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Not another Blue Monday sale: good news and money tips instead

21/01/2019

Blue Monday potato smile.jpg

Yes, yes, it’s Blue Monday. Again. A day to wallow and whimper over your dwindling bank account, miserable weather, and generally naff life… at least that’s what they tell you.

Most of us have heard by now that the national day was created in 2005 to sell summer holidays. And since then everyone else has bundled aboard: “Feeling blue? Buy some red socks.” “Down in the dumps? Have 50% off potato smiles. Problem solved.” Bleurgh!

Of course, Blue Monday isn’t all bad. It’s a great way to start conversations about depression and other mental health issues that are usually swept under the rug. And January being the month after December – the early-payday-for-Christmas-and-New-Year-oh-wait-I’m-skint month – it’s a good time to dust off the financial fitness plan too.

 

Take our 6-question quiz and get your financial fitness plan

 

Feeling blue? Here are three silver linings you hadn’t considered

If you’ve done the financial fitness quiz and downloaded your tailored plan, you’ve taken the first steps to getting your money in order. That’s one thing to be pleased about already. Here are three more…

 

1. Brexit means Breakfast

Cause for gloominess: Brexit headlines are still boring us every day and giving the economy a heart attack, and last week’s vote means we’re no closer to a conclusion.

Silver lining: Theresa May’s defeat (202 ‘hell yeah's to 432 ‘hell no’s) was the biggest loss in British parliamentary history, so at least she’s achieved something. To be fair, the pound did begin to rise again as a result, which is handy if the Blue Monday marketing worked and you’re buying travel money. (I’m off to Thailand, myself.)

Plus, according to various industry bods, the rebounding pound and uniting detractors suggest we’re more likely to end up with a softer Brexit, or that even if we get a ‘no deal’ decision we’ll have more time to prepare for it. And whatever your views on Brexit, less volatility is probably a good thing for UK investments.

 

2. The only way is up?

Cause for gloominess: According to Bloomberg analysts, 89% of assets made a loss last year, which is more than any year since 1901.

Silver lining: Buy low, sell high. That’s the aim of this investing game, isn’t it? So maybe shares that have fallen are shares that could make you money IF they rise again.

Admittedly, this is what’s called ‘over-simplification’. But if you did your research into company X one week and decided you want it, and then the price fell the next week, that’s not necessarily a bad thing. This could just be a short-term wobble. However, it could also be the start of a long-term nosedive. Nobody knows. And we’re not saying now’s the best time to buy – we’re just saying you shouldn’t automatically panic.

 

3. Now you’re interested

Cause for gloominess: Interest rates are so rubbish these days that far fewer of us opened Cash ISA accounts last year than the year before. 697,000 fewer of us!

Silver lining: Inflation fell from 2.3% in November to 2.1% in December – the lowest rate since January 2017. That means if you keep your savings in cash, your money might actually retain its value. (Shawbrook Bank have a 2.3% fixed cash ISA, and savings accounts from Secure Trust, Vanquis and My Community Bank could get you up to 2.69% – so what you gain from interest would be more than you lose to inflation.)

“It means that active savers can now fix their savings for the time period that suits them best – and still beat inflation,” celebrates Sarah Coles, personal finance analyst at Hargreaves Lansdown.

 

See… it’s not all bad

2019, we have high hopes for you. Don’t let us down!

For more ways to get financially fit this year, don’t forget to download your personalised 6-point plan.

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Which funds should I invest in for 2019? Ask the money elves

Looking to make a few festive investments? To help you choose the stock market gifts that keep on giving, we asked the financial elves from some of the UK’s top platforms for their 2019 investment tips.

Which funds should I invest in for 2019?

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Which New Year's resolution should I make? Managing money in 2019

Want to make up for those midnight shots? Forget about squats and salads - make 2019 your year of financial fitness. It's easier than you might think... (There's even a personalised plan you can download.)

Which New Year's resolution should I make? Managing money in 2019

Learn the Tribal Way

What have other people been doing? Learn from their experiences.

Find which money tribe you belong to and get financial advice designed for you. Whether you're a Rebellious Renter, Suspicious Saver, Distressed Divorcer or anyone else, we make it that little bit easier to manage your money.

Tribes - Learning Paths

Related Questions

Got a Question?

  • I've a Cash ISA with about £80k in it, so I'm considering moving £50k into a Stocks & Shares ISA. I'm 73, retired, married, a house-owner and would like to utilise my savings better. What would you recommend?

    Barry | Berkshire | 18/04/2019 | 0

    • Stocks and Shares ISA
    • Cash
    • Online Investment Platforms
    Helena Wardle's Response

  • I am 52 with money languishing in a low savings account. Now I'm neurotic about entering into Stocks and Shares, due to seeing how many investors have exited the stock market thanks to Brexit, and with companies going bust etc. But I need to make my money work for me as my pension pot is low. Can I put the money into an Instant Access ISA and drip feed this into a Stocks and Shares ISA?

    Helen | London | 09/04/2019 | 1

    • Stocks and Shares ISA
    • Cash
    Lesley James's Response

  • My parents (father since died) put money into Halifax 'Money Fund'. This then apparently changed to some form of 'investment'. I noted in January 2019, that a letter had been sent just under 3 years previously, advising that this was not the best place for their money. I made contact and complained. What can we do, as this money may as well have been under their mattress? It was originally mis-sold.

    Maureen | Gloucestershire | 04/04/2019 | 0

    • Funds
    Helena Wardle's Response

  • I have had a Hargreaves Lansdown Stocks & Shares ISA for the past 2+ years, divided into their Portfolio Plus Balanced Growth and in a mixture of shares I selected myself. While I am happy to keep the shares element, I don’t feel the managed portfolio is working for me and I could do better elsewhere. Where would you suggest I could invest for a better return? I am happy with balanced and some element of high risk. I’m 47, have two primary school age children, & live in central London. I also have a mortgage and a workplace pension.

    Jennifer | London | 20/03/2019 | 0

    • Shares
    • Online Investment Platforms
    Holly Mackay's Response

  • My Fundsmith accumulation Class 1 investment fund has done well over the last 5 years, and its share price today is just about the highest it's ever been. Should I bank it now in case it goes down, or leave it and diversify by reinvesting monthly elsewhere in another fund?

    Peter | Stockport | 18/03/2019 | 0

    • Funds
    Holly Mackay's Response

  • I recently received an inheritance and it is currently sat in Premium Bonds. I'm looking to hopefully use the money to put down on a house in the next couple of years, but I'm currently going through a divorce which does affect my ability at the moment to get on the housing market. Is there any way I can make my money work harder for me, yet still ensure I have access to it in a couple of years?

    Ben | Avon | 12/03/2019 | 0

    • Cash
    Helen Howcroft's Response

  • I am in my mid 20s & earning a regular salary. I have decent savings and am toying with the idea of Wahed Invest (I am looking for shariah compliant funds). I am also dabbling with the idea of property. If I have no financial commitments (living at home for next 2 yrs), is it worth using 90% of my savings for a house deposit for buy-to-let purposes? I am thinking this would reduce my loan to value?

    Zara | West Midlands | 12/03/2019 | 0

    • Lifetime ISA
    • Cash
    • Robo Adviser
    David Stone's Response

  • I’m 36 years old, earn £85k, and have about £40k savings in the bank, mainly in an old ISA that I’ve done nothing with. I have a five year old daughter and would like to put my savings somewhere clever so they start to do something useful by the time she starts at an independent secondary school and fees go through the roof. Any bright ideas please?

    Milly | Berkshire | 22/02/2019 | 2

    • Stocks and Shares ISA
    • Junior ISA
    • Shares
    • Online Investment Platforms
    Catherine Morgan's Response

  • I've been reading recently about how investment trusts are much the same as funds, but are cheaper to own. A: Is this true? and B: Do you have an article on Investment trusts on your site?

    Nick | Surrey | 16/01/2019 | 2

    • Funds
    • Other
    Phoebe Smith's Response

  • Hello, I really enjoy your website and find it useful and concise. My question is, what is meant by long term savings? I am 54, so what should I consider to be an appropriate time frame for any investment I make, that could supply the best results?

    Jennifer | Essex | 16/01/2019 | 9

    • Online Investment Platforms
    • Funds
    • Pension
    Anna Sofat's Response

  • From my retirement I received a lump sum of money and a monthly pension. I have £100,000 that I do not need for the foreseeable future... One of my main concerns with Financial Advisers are their costs... All I want is simply to see this money grow to its potential, sensibly and above inflation... Therefore my next thoughts are Stocks and Shares ISAs... My only concerns here are the current Brexit problems - I saw the FTSE drop this past week. I cannot find any information out there to assist with my decision making if this is certainly a good time to invest... I am aware that I can place £20,000 for this year. Come April 2019 I place another £20,000 and so on until the £100,000 has been utilised. Do I have to place it into the same fund or can I choose another different fund with a different company?... Please can you help to ease some of this burden, which has proved an awful part of my retirement and made me frightened to spend any money.

    Katherine | Derbyshire | 02/01/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    • Cash
    • Robo Adviser
    • Online Investment Platforms
    • Workplace Pension
    Helena Wardle's Response

  • I’ve been investing in Nutmeg’s Risk 10 profile for three years which helped my deposit for my house. I am now wondering whether to use Nutmeg again, or should I use LifeStrategy for my £1000 per month? Is there a difference between Vanguard's LifeStrategy option and let’s say a well known robo adviser like Nutmeg? I am still a beginner and would like to keep things simple, but happy to take risk and prepared to leave my investments for a long time.

    Jordan | Surrey | 26/11/2018 | 8

    • Robo Adviser
    • Online Investment Platforms
    • Funds
    Phoebe Smith's Response

  • I was lucky enough to inherit a significant sum from my father... currently in Alliance trust platform in 10 investment trusts. They have delivered well in the last 20 years. But they are UK equity based. And highly risky. Do you offer a sanity check service for confused individuals like myself? I don’t know what to do...

    Paul | Berkshire | 12/11/2018 | 2

    • Private Pension
    • Online Investment Platforms
    • Funds
    Holly Mackay's Response

  • I am 25 and starting to seriously financially plan out my future. I would really welcome a 'sense check' on my thinking as well as some help on which investment choices to make. My goals are: To invest for 15 years - my risk appetite is very high (i.e. I could afford to lose all my money). Goal 1 - More Important: To have an investment pot of £1,500,000. Goal 2 - Less Important: To be mortgage free. My plan is: 1) Open an annual Stocks and Shares ISA each of the next 15 years. 2) Open Share trading/dealing account. 3) Reduce my mortgage term to 6 years by 2025. I appreciate the above is a lot to go though, but I'd welcome any help and guidance.

    Mo | London | 15/10/2018 | 3

    • Stocks and Shares ISA
    • Shares
    • Online Investment Platforms
    • Funds
    • Other
    Holly Mackay's Response

  • The recent Metro article which Holly participated in has really inspired me and made me think that investing in shares is something which I would like to do. Unfortunately I am completely thrown about where to start. I would be grateful for any advice you could pass my way. Realistically, I would only have about 2k to invest, so any tips would be gratefully received.

    Sarah-Jane | London | 12/09/2018 | 3

    • Stocks and Shares ISA
    • Cash
    • Online Investment Platforms
    Holly Mackay's Response

  • Is there a reason you don’t list Saga in your Best Buys? Additionally, I have purchased a few investment trust shares but can’t work out how the dividends are paid. Scottish Mortgage is an example. I wasn't given an option to choose how to receive the dividends. It would be useful if you could provide some clarity on how investment trusts pay their dividends.

    Carl | Buckinghamshire | 07/09/2018 | 1

    • Shares
    • Online Investment Platforms
    Holly Mackay's Response

  • Any advice for two young people trying to get themselves a home? My girlfriend and I are saving for a house together. Currently house prices in our area are a ridiculous £300k. The max we can get from banks is about £220k, meaning somehow saving up a whopping £80k deposit. This would take us about 8 years (and house prices are increasing faster than we're saving!) That's not to mention solicitors fees, stamp duty, the cost of moving, furnishing the house, white goods, and any repairs or renovations. It all just seems impossible!!

    Joe | Buckinghamshire | 23/08/2018 | 0

    • Stocks and Shares ISA
    • Lifetime ISA
    • Cash
    Kate Fitzpatrick's Response

  • Can you advise me on the best approach when looking to invest in a product that offers compound interest? I’m thinking about funds rather than bank accounts. I also have 4 different pensions on the go. Should I keep them separate to diversify the risk? Or consolidate them? How will these pensions be treated when I retire? Will they be considered in aggregate by the tax man?

    Craig | Clackmannanshire | 16/08/2018 | 1

    • Private Pension
    • Online Investment Platforms
    • Funds
    Helena Wardle's Response

  • I have about two thirds of my ISA in funds with Charles Stanley Direct and about one third left with St James's Place. I was planning to transfer the remaining one third to Charles Stanley Direct. However the recent platform price increases seem to put me in the worst position possible. I also have a private St James's Place pension. Would I be correct in thinking the fees are also high on this, and I could do better elsewhere? Can I transfer into an SIPP for example?

    Gerry | Bedfordshire | 15/08/2018 | 6

    • Private Pension
    • Online Investment Platforms
    • Funds
    Holly Mackay's Response

  • I invested my money in a St James's Place managed fund, split into ISAs and bonds, after advice from an adviser who was a St James's Place partner. My investments have done reasonably well, but I've read disturbing reports about St James's Place. Should I have concerns? Should I have found an independent financial adviser?

    Glyn | Essex | 09/08/2018 | 6

    • Funds
    Holly Mackay's Response

  • I wanted an investment trust with an income, so I put £10,000 into The Investment Company. It delivers a reliable quarterly dividend but the capital value has dropped by 10% since I invested 2 years ago. What are your favourite investment trusts?

    Fran | Greater London | 08/08/2018 | 4

    • Shares
    • Funds
    Mark Dampier's Response

  • Is there an average number of funds that one should ideally hold? I have in excess of 20. I am happy with my portfolio and coverage, but wonder if I have too many funds. The second part to the question is how long should you leave an underperforming fund?

    Richard | Hertfordshire | 06/08/2018 | 3

    • Funds
    Holly Mackay's Response

  • I'm 24 and would like to begin investing. Am I better off using a robo advisor such as Wealthify/Wealthsimple or a fund such as Vanguard LifeStrategy?

    Amanda | Greater London | 06/08/2018 | 6

    • Shares
    • Robo Adviser
    • Online Investment Platforms
    Holly Mackay's Response

  • I have cash saved in ISAs and savings accounts - probably a 30% deposit on a property - first time buyer. I am at least 12 months away from getting a permanent job, so at least 12 months away from buying a property. What can I do with the cash in the meantime? Best just to leave it in cash for now, or invest a portion in stocks and shares ISAs?

    Malti | London | 25/07/2018 | 2

    • Stocks and Shares ISA
    • Lifetime ISA
    • Cash
    Holly Mackay's Response

  • I am 73 and cautious. There are two areas that your advice would be helpful..what if you just spend thousands on buying the gold standard footsie companies like shell and the rest and keep them for five years and then cash them in ?

    DB | UK | 24/07/2018 | 6

    • Robo Adviser
    • Online Investment Platforms
    • Funds
    • Pension
    Holly's Response

  • I hope you can help. I recently consolidated two modest pensions into a SIPP in readiness to start UPFLS drawdown in May (2018). Whilst I was hoping for growth in my investments I wasn’t expecting it to rocket and now find I could well be looking at exceeding the lifetime allowance, possibly even before my first annual drawdown in May, and I’m unsure what, if anything, I should do.

    John | LDN | 03/07/2018 | 1

    • Private Pension
    • Funds
    Richard Allum, MD of The Paraplanners's Response

  • What are the differences between income and accumulation income funds? How do you declare income reinvested in a fund on your tax return?

    C | 05/06/2018 | 0

    • Funds
    Helena Wardle's Response

  • I would like to open a Junior shares ISA for my Grandson for about £50/month. How do I go about it and can you recommend some reliable companies?

    Roger | Surrey | 26/04/2018 | 2

    • Junior ISA
    • Shares
    Founder and CEO's Response

  • Can you recommend some very basic books for a 69-year-old widow who is now having to manage her money? Thanks

    Martha | 12/04/2018 | 0

    • Shares
    • Funds
    Helena Wardle, Chartered Financial Planner, Sterling and Law's Response

  • I just found your web site (recommended in Andy Bell's book on Do It Yourself investing). Could you say why you do not review Halifax Share Dealing in your list of ISA providers? Is there anything wrong with this ISA provider for you not to include it?

    Gerald | 11/04/2018 | 0

    • Shares
    Dr Richard Bradley's Response

  • Hi, I've got an old D.B. pension, approximate value £12k. I would like to invest & top up each month. Who would you recommend? Also I would like to make an investment, & don't know where to start? Thanks

    Eve | 04/04/2018 | 5

    • Funds
    • Pension
    Helena Wardle's Response

  • I am post-divorce with a good settlement which I have only partially invested. Are there any courses you can recommend? I have sat in a number of meetings with accountants and financial advisers feeling somewhat patronised! I am sure that there are plenty of women in a similar position to me (aged 55!).

    Ellie | 14/03/2018 | 3

    • Shares
    • Funds
    • GIA
    Holly Mackay's Response

  • How can I find a good financial adviser?

    Byron | Greater London | 01/03/2018 | 0

    • Shares
    • Funds
    Holly Mackay's Response

  • I am in the very lucky position of just having received a gift of £800k which I want to invest for our retirement. My husband and I are in our late 40s and aim to retire in around five years. We have 11 more years of school fees to fund, then hopefully university fees for two after that. I've put together a plan for us - can you have a look and see if it makes sense?

    Fiona | UK | 18/01/2018 | 6

    • Private Pension
    • Stocks and Shares ISA
    • Junior ISA
    • Shares
    • Cash
    • Online Investment Platforms
    Holly Mackay's Response

  • We have four grandchildren (2 English living in UK, and 2 Irish living in Eire). We have decided to start savings plans for their futures. Their ages are 18yrs, 11yrs, 8yrs and 4yrs respectively. My age is 75yrs, and my wife is a little older. What should we do, please?

    John | BKM | 01/01/2018 | 1

    • Junior ISA
    • Lifetime ISA
    • Shares
    • Funds
    Martin's Response

  • Given the recent poor performance in Woodford Equity Income, do you think I should sell it or wait for the fund to recover?

    Jenna | Cornwall | 17/12/2017 | 3

    • Funds
    Mark Dampier's Response

  • How do I start investing, buy stocks, bitcoins, etc with £100.00?

    Claudette | BDF | 18/11/2017 | 1

    • Shares
    • Other
    Holly Mackay's Response

  • I am a 59 yr old retired lady with no income but I have reasonable equity..is it worth starting a pension or is it too late?

    LL | NFK | 10/11/2017 | 2

    • Private Pension
    • Shares
    • Pension
    Cherry Reynard's Response

  • I am getting long in the tooth at 79, a little forgetful and I am going through a painful divorce. This has shattered my confidence and I need help.

    Richard | Kent | 05/11/2017 | 3

    • Private Pension
    • Funds
    Holly Mackay's Response

  • My mother is 84 and has around £35,000 in cash, realised when she moved to a smaller house. She would like to invest it and draw income that would be slightly higher than the natural yield - say around £2,000. What is the best vehicle for that please?

    Ed | SXE | 18/09/2017 | 4

    • Stocks and Shares ISA
    • Cash
    Danny Cox's Response

  • I have just sold my house and have a significant sum of money I want to invest. I may want to draw some income but also want to achieve capital growth. Are there funds that aim to achieve both or should I just invest for growth and draw money as I need to for income?

    Jon | SRY | 13/09/2017 | 1

    • Funds
    Peter Matthew's Response

  • I have a delightful 12 year old daughter and she has just opened her first bank account. I am dreadful with money but I would like to know what I should teach her so that she does not pick up my bad financial habits. Do you have some top tips of things to teach our children so they are wise and responsible with money please?

    Louise | Greater London | 11/09/2017 | 1

    • Junior ISA
    • Shares
    • Cash
    Lesley James's Response

  • I am interested in the Fund piece that Holly refers to in today's Money Supplement in the ST’s with 'Lindsell Train Global Equity'. I am looking for a fund for myself (54 yrs old) but also my son (19 yrs old). Is this fund suitable for either of us with an investment strategy of 10 years +.

    Richard | 22/01/2017 | 0

    • Funds
    Holly Mackay's Response

  • I am confused about index funds, e.g. Vanguard Equity fund. Do they track an index or include the yield? In the case of Vanguard, their low cost is attractive but their portfolio is made up of other Vanguard funds. I assume these probably each carry a fee structure - is this correct?

    Robin | Gloucestershire | 03/09/2018 | 0

    • Online Investment Platforms
    • Funds
    Mark Dampier's Response

  • Is it worth using a financial adviser when it comes to switching pensions funds, or should I do the research and pick the funds myself? I am no expert in stocks and shares.

    Helen | Dorset | 10/08/2018 | 4

    • Private Pension
    • Shares
    • Funds
    Helena Wardle's Response

  • I've got £20,000 from an endowment policy (astonishing, I know), and I'm looking into how best to invest to get a reasonable return without excessive risk. Any thoughts much appreciated!!

    Penny | Peterborough | 09/08/2018 | 1

    • Stocks and Shares ISA
    • Cash
    • Online Investment Platforms
    • Life Insurance
    Danny Cox's Response

  • I am looking for a fund for myself (54 yrs old) but also my son (19 yrs old). Is this fund suitable for either of us with an investment strategy of 10 years +.

    | 29/05/2018 | 3

    • Robo Adviser
    • Funds
    Holly Mackay's Response

  • I use H&L and although they are a bit 'plumy' on the phone I quite like their website and the costs are OK. So I was thinking of H&L for [my son]. I would be telling him to open these two funds and regularly invest and forget about them for 10 years!

    R | Greater London | 29/05/2018 | 1

    • Lifetime ISA
    • Robo Adviser
    • Online Investment Platforms
    • Funds
    Holly Mackay's Response

  • Given the recent poor performance in Woodford Equity Income, do you think I should sell it or wait for the fund to recover?

    | 29/05/2018 | 0

    • Funds
    Boring Money's Response

  • I have a bit of excess money to play around with and I have been looking at Investment funds. What is the typical % growth rate of an investment fund?

    David | Greater London | 07/09/2017 | 7

    • Online Investment Platforms
    • Funds
    Cherry Reynard's Response

  • Should I be even thinking about the stock market?

    Lysa | Greater London | 06/09/2017 | 0

    • Stocks and Shares ISA
    • Shares
    Holly Mackay's Response

  • What funds could my millennial children invest in?

    Anthony | Greater London | 06/09/2017 | 2

    • Funds
    Holly Mackay's Response