Pages

Broken iPhone? Don't break the bank

Disaster has struck! Your phone has stopped working!

What are your options?

1) Try to live with the broken phone. If it's just a cracked screen maybe you'll be able to continue your life with the shame!

2) potentially you've caused irrevocable damage and living with it just won't do! Another option is to claim on the warranty (assuming it wasn't an accident or your own fault)

3) most warranties run out after 12 months but most contracts are 24 months. It's unlikely that your phone won't incur some blemishes/ faults by the end of your contract and you won't be able to rely on the warranty. The next option is to claim on you phone insurance

4) don't have mobile phone insurance? Don't fuss. Have you tried your contents insurance? Still not covered? Have you checked with your bank account provider? Many accounts nowadays offer free mobile phone insurance as part of the package of banking with that Bank

5) still no luck then? How badly did you break it?! If it's a minor fault e.g. The headphone jack has stopped working, you should try googling the problem. Chances are someone's faced it before and figured out how to fix it. This is something I did (a complete technophobe) and I managed to repair my headphone jack

6) have you tried upgrading your phone early? Many phone companies allow you to upgrade your phone three months before the end of your contract. Others even allow you to upgrade every year

7) still no luck!!!??? Ok either you can go back to option one and just live with it or you're going to have to bite the bullet and get it repaired. There are plenty of high street shops that will repair phones. These are far cheaper than going back to the original phone manufacturer

Hopefully at least one or more of these strategies can save you some money next time you break your phone (well maybe not number seven!).

Do you like what you've read? Tell your friends by sharing it with one of the buttons below. Please post this to Facebook or Tweet it to help your friends and family. Feel free to send me an email (mrmoneybanks@multimillionaireroad.com), find me on twitter @millionairer0ad or comment. Whether good or bad, I want to hear from you all.

Premium Bonds in depth - A bad investment?

Premium Bonds: What are they? How do they work and should you get some? This article discusses the pros and cons of buying premium bonds.

What are Premium Bonds?

Picture from freedigitalphotos
UK Premium bonds are simply bonds that instead of paying interest enter the owner of the bonds into a monthly prize draw in which the owner has the potential of winning prizes valued between £25 to £1 million. You can invest anywhere between £100 to £50,000 into premium bonds. Obviously the more bonds you own, the higher your chances of winning a prize in the monthly draw.

Benefits of Premium Bonds

There are a few benefits of buying premium bonds. First of all the winnings of Premium Bonds are tax free. Secondly, the Bonds cannot go down in price so you can sell your bonds for whatever you originally paid for them. Obviously the real value of these bonds would have gone down due to the effects of inflation. The money is backed by the Treasury so the capital is 100% safe. There is the potential for large winnings (I use this word rather than returns deliberately).

Problems with Premium Bonds

The average annual returns of Premium Bonds are 1.5%. This appears quite a poor return when compared to average Cash ISA accounts that currently pay on average, a 3% return. Furthermore the 1.25% is not actually what you will get per year. For example if you hold £100 of premium bonds you are not going to get £1.25 a year because the minimum prize is £25, and you actually have to win to get the prize of which the chances are roughly 30000:1 per pound invested. As you can see, an individual is very unlikely to win in their first year with £100 of premium bonds. The odds suggest that a person with £100 is likely to win a prize every 20 years.

Premium Bonds - More chance of winning the lottery?


The fact that £100 will only win you £25 within 20 years if you have average luck makes it quite astonishing that Premium Bonds are some of the most popular bonds in the UK with one in every two people holding them. I was wondering if you had more chance of winning the lottery:
Premium Bonds: The odds of winning per £1 is 30000:1 with prizes ranging from £25 - £1million

Lottery: Odds of winning a prize in the lottery with £2 roughly 54:1 with prizes ranging from £25- £5million
Basing our evaluation purely on odds, I find it quite amazing that a £2 investment is more likely to win in the UK national lottery than to win in Premium Bonds. Of course I have missed out the fact that your investment in the lottery is a one off, whereas your investment into Premium Bonds is for life if you so wish it. Let's change the numbers slightly:

Premium Bonds: The odds of winning per £100 is 300:1 with prizes ranging from £25 - £1million. Essentially this allows you to play a lifetime amount of lotteries. Let us say you bought the Bonds when you were 20 and die at 80. That is 60 years of monthly plays at this lottery, essentially 720 plays. In that time you should win at least twice.
Lottery: Odds of winning a prize in the lottery with £2 roughly 54:1 with prizes ranging from £25- £5million. However, this time we allow you to play once every week for 50 weeks (totalling £100). Clearly from the odds are that you are likely to win only once in this time period.
As you can see whether you invest in Premium Bonds or the lottery, it is a gamble in both as to whether you win or not. The numbers suggest that in both you are likely to be throwing away your £100. The question is therefore: Would you rather throw it away over 60 years but win a prize once every 20 years or would you rather throw it away over two years but win twice in that time. Honestly if I had to choose based on numbers I would choose the second option. 

Premium Bonds - the qualifier

So the question is:
You've just been given £100, where do you put your money?
The interesting thing is that even though I know the  low odds of winning I own Premium Bonds and have played the lottery twice. Amazingly I held £100 of Premium Bonds for 3 years and won £25 twice! Not bad. Logic states that I've had above average luck and should sell my bonds now while £100 is still worth £100!

Unfortunately I am not as sensible as this and will probably leave my premium bonds forever. For some reason I enjoy the excitement of thinking that one day I might just win big. Even £500 would be an unbelievable win. You've got to be in it to win it, and sadly this slogan had talked me into making what is, on paper, a bad investment.

Readers, am I a fool? Why do we invest when the numbers are clearly against us? Have any of you bought Premium Bonds? Would you rather play the lottery 100 times over than buy £100 of Premium Bonds, or would you do neither?

Do you like what you've read? Tell your friends by sharing it with one of the buttons below. Please post this to Facebook or Tweet it to help your friends and family. Feel free to send me an email (mrmoneybanks@multimillionaireroad.com), find me on twitter @millionairer0ad or comment. Whether good or bad, I want to hear from you all.

Premium Bonds Explained

The following article is about premium bonds: what are they? how can you invest in them? should you be investing in premium bonds?

Premium bonds are a UK investment product organised by the National Savings and Investment Scheme. The scheme is available to all UK citizens, although can be bought from outside the UK in certain countries. The main feature of Premium bonds is that there is no fixed amount of interest earned from your investment. Instead each £1 of Premium bonds enters you into a prize draw to win tax free prizes. The other main features of Premium bonds are:
  • Prizes range between £25 to £1million (two prizes each month are £1million and 5,000 are worth between £500 and £100,000)
  • Minimum investment is £100
  • Maximum investment per person is £50,000
  • All earnings from Premium bonds are tax free
  • Prizes are drawn once a month
  • There is no guarantee of winning any draw
  • The rough odd of winning a prize will be 30,000 to 1 each month (from 1 June 2016) with roughly equates to a return of about 1.25%
  • Premium bonds do not expire
  • Premium bonds do not lose their capital value such that if you buy £100 of Premium bonds you can sell £100 of Premium bonds at any time in order to receive £100
How to apply?

There are three ways to apply:
  • Online - nsandi.com
  • Phone - 0500 500 000
  • Post - download the form from the nsandi.com website and post to NS&I, Glasgow G58 1SB

Should you be investing in Premium bonds?

I would always recommend having a balanced portfolio of assets. However, bear in mind that there is no guarantee of income from Premium bonds. So my advice is this...if you have spare cash then buying some Premium bonds could be a little bit of fun and may result in some big changes. However, if you are looking to build assets or looking for income then I recommend investing in other products that offer a higher return.

Do you like what you've read? Tell your friends by sharing it with one of the buttons below. Please post this to Facebook or Tweet it to help your friends and family. Feel free to send me an email (mrmoneybanks@multimillionaireroad.com), find me on twitter @millionairer0ad or comment. Whether good or bad, I want to hear from you all.


Disclaimer

Information on this site is not appropriate for the purposes of making a decision for carrying out a transaction or trade nor does it provide any form of advice (investment, tax or legal) amounting to investment advice, or make any recommendations regarding particular financial instruments, investments, or products.
Always seek advice of a competent financial advisor with any questions you may have regarding a financial matter