June 2021 - Lawsons Equity

18th – 25th June 2021

Market Update

European shares rose in volatile trading, buoyed by a reaffirmation of ultra-loose monetary policy and a bipartisan agreement on a huge U.S. infrastructure spending plan. The pan-European STOXX Europe 600 Index finished the week 1.23% higher. The main stock indexes also posted gains. Germany’s Xetra DAX Index rose 1.04%, France’s CAC 40 0.82%, and Italy’s FTSE MIB 1.16%. The UK’s FTSE 100 Index added 1.69%.

BoE policymakers voted unanimously to keep the key interest rate at 0.1% and by eight to one to maintain the asset purchase program until the end of the year. The central bank stated inflation could reach as high as 3% and economic growth would be strong, but the increases would be temporary.

Core eurozone government bond yields ended the week marginally higher. German bund yields initially tracked rising Treasury yields, and were then elevated further by strong purchasing managers’ index (PMI) data and business confidence readings. Yields then fell in sympathy with the Bank of England’s (BoE) pacifistic outlook, before inching back up ahead of Friday’s U.S. inflation print. Peripheral eurozone bond yields also varied, while UK gilt yields ended lower after the BoE reaffirmed its view that near-term inflation strength would be transitory.

US Stocks bounced back from the previous week’s declines, bringing the S&P 500 Index and the technology-heavy Nasdaq Composite index to new highs and assisting both record their best weekly gains since early April. Energy shares fared best within the S&P 500 as oil prices reached their highest levels since October 2018 on decreasing global inventories. Utilities and real estate stocks lagged.

Inflation fears appeared to resurface late in the week. The yield on the benchmark 10-year Treasury note jumped on Friday morning following a report that the Fed’s preferred inflation gauge– the core (less food and energy) personal consumption expenditures index– had risen 0.5% in May, bringing the year-on-year increase to its fastest pace (3.4%) since 2008.

Japanese stocks had a turbulent start to the week, falling sharply on the first trading day before rebounding on the second. Sentiment soured after the U.S. Federal Reserve’s hawkish pivot increased concerns about an earlier-than-expected tapering of its accommodative policies. Reassurances from the central bank that it will continue its supportive stance to ensure the sustained improvement of the economy helped stabilise markets.

The Nikkei 225 Index returned 0.35% for the week. The TOPIX was up 0.83%. The Japanese yen fell against the U.S. dollar to its lowest level since March 2020 during the week. The yield on the Japanese 10-year government bond fell to 0.05%.

China’s large-cap CSI-300 Index added 2.7% and the Shanghai Composite Index rose 2.3%, ending a three-week losing streak. Financial stocks led the rally after the People’s Bank of China (PBoC) injected liquidity into the financial system for the first time since February.

The yield on China’s 10-year sovereign bond fell 10 basis points, closing the week at 3.10%. In currency markets, the renminbi began the week on a weak note but subsequently rallied to end flat against the U.S. dollar at RMB 6.453.

Last week saw oil prices rise for a fifth week, reaching their highest since October 2018, on expectations demand growth will outstrip supply and OPEC+ will be cautious in returning more crude to the market from August.

Lawsons Equity – Financial Planners Malta

Lawsons Equity Limited is a company registered in Malta with company number C49564 and licensed by the Malta Financial Services Authority as Enrolled Insurance Brokers under the Insurance Intermediaries Act 2006, and to provide Investment Services under the Investment Services Act, 1994. Lawsons Equity Ltd have passported their services across the EU. To see a full list of countries, click here.

Is being a millionaire all it’s cracked up to be in 2021?

Are you familiar with the quiz show “Who Wants to Be a Millionaire”? It was launched in the UK in 1998 and is still around today. The show consists of a series of questions to be answered correctly, to be in with the chance of winning up to €1 million. But why has one million always been the benchmark for being classed as ‘rich’? Why is that the magic number to justify yourself as a wealthy individual?

Why are we striving to be millionaires?

Of course, it’s an aspirational goal. To everyone who has exceeded that magic figure, it would have been a real momentous milestone. Although a figure that would for sure change your life – it’s not always about the figure in your bank account, but instead how comfortably you can live your life – or maybe for some, live a life of luxury.

Being a millionaire isn’t about the figure, it’s the achievement and the lifestyle that comes with reaching it. But do you know what we find funny about the show ‘Who Wants to Be a Millionaire’? It’s the fact that since 1998 they have kept the same prize pot. If they had inflated the prize fund in line with inflation, it would be a little more attractive in today’s world, as we would now be playing for €2,061,689.26.

The reality of owning a million euros is you can now claim yourself as a millionaire (if you wish) and it’s definitely a sign to let you know everyone you’re pretty rich. But just how rich are you in today’s day and age?

Having €1 million in the bank is no mean feat, but it may not make you as filthy rich as you think.

You see, €1,000,000 doesn’t buy what it could have when Who Wants to be a Millionaire? First aired in 1998.

In the past, your €1 million could have bought you 14 average houses, but in 2021, that same amount will only buy you four.

What is the ‘new millionaire’?

The benchmark for being filthy-rich has changed since the 80s and 90s. One million isn’t worth what it used to be.

So what do I need in the bank to be filthy rich? What does the new millionaire look like? Well apparently, in 2021, to make it onto the ‘super-rich’ list, you’ll need to be worth at least €38million. That suddenly puts things into reality, doesn’t it?

Although there may be many millionaires and multi-millionaires, there is also a rise of billionaires, making millionaires seem like a drop in the ocean.

Do you need to be a millionaire to be rich?

Back to what being a millionaire means. A comfortable lifestyle, a healthy pension, not struggling, and being able to pass wealth down as inheritance.

Being rich is being able to spend money without having to rationalise every penny to yourself. It’s having an emergency savings pot built up, it’s financially stable, and it’s having disposable income. Do you need to be a millionaire to be wealthy? No, although it sure wouldn’t hurt!

Click here to schedule a no obligation initial consultation with one of our advisors.

Sources:

https://www.bbc.co.uk/news/business-42904875

Lawsons Equity – Independent Financial Advisors Malta

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.

The value of investments and income from them may go down. You may not get back the original amount invested.

Lawsons Equity Ltd have passported their services across the EU. To see a full list of countries click here.

Market Update

11th – 18th June 2021

Shares in Europe fell after the U.S. Federal Reserve indicated it would increase rates sooner than previously anticipated. In local currency terms, the pan-European STOXX Europe 600 Index slid 1.19%. Germany’s Xetra DAX Index fell 1.56%, Italy’s FTSE MIB Index fell 1.94%, and France’s CAC 40 Index eased 0.48%. The UK’s FTSE 100 Index slipped 1.63%.

Core eurozone government bond yields rose with U.S. Treasury yields after the Fed communicated plans to begin increasing interest rates in 2023. Comments from the European Central Bank (ECB) helped moderate this move. Peripheral government bond yields broadly tracked core markets. Greek five-year government bond yields turned negative for the first time, reflecting the ECB’s plan to continue its monthly bond-buying program. UK gilt yields ended higher on increased expectations that the Bank of England (BoE) would tighten policy after inflation exceeded the bank’s target, and on the Fed’s more aggressive stance.

UK inflation jumped again in May, accelerating to 2.1%, on higher prices for clothing, fuels, and meals in bars and restaurants. The increase was above economists’ forecasts and the BoE’s target. If the inflation rate consistently exceeded the BoE’s target, governor Andrew Bailey said last month he would not hesitate to tighten monetary policy.

US stocks declined as a surprisingly aggressive outcome from the Federal Reserve’s June 15– 16 policy meeting, and late-week remarks from a Fed official about potentially earlier-than-expected rate hikes dragged the Dow Jones Industrial Average lower. The Dow includes many cyclical companies — those most dependent on economic growth. However, the tech-heavy Nasdaq Composite index posted a much more modest loss. The broad market S&P 500 Index declined.

U.S. Treasuries were volatile following the policy meeting. The 10-year U.S. Treasury yield increased sharply after the Fed meeting on Wednesday, before falling on Thursday and Friday. (Bond prices and yields move in opposite directions.) Short- and intermediate-term Treasury yields experienced more sustained increases. The difference in yield on five- and 30-year Treasuries reached a lower level than where it started 2021, a trend that could weigh on financial stocks because banks tend to profit from larger spreads between short- and long-term rates.

Japan’s stock markets generated mixed returns for the week, with the Nikkei 225 Index rising 0.05% and the broader TOPIX Index down 0.38%. The yield on the Japanese 10-year government bond rose to 0.06%, while the yen weakened to JPY 110.23 against the U.S. dollar.

Chinese stocks recorded their third weekly loss. The large-cap CSI 300 Index fell 2.3%, and the Shanghai Composite Index shed 1.8%. The yield on China’s 10-year government bond rose five basis points to 3.20%.

Brent crude futures rose 43 cents, or 0.6%, to settle at $73.51 a barrel on Friday, while US West Texas Intermediate (WTI) crude rose 60 cents, or 0.8%, to $71.64 a barrel. Both were up around 1% for the week. Gold shed $110 an ounce last week, again thanks to the Fed’s inflation and interest rates announcements. It fell 0.6% on Friday to $1,762.63 per ounce, with prices down around 5.7% on the week. Silver lost 7.8% for the week after closing at $28.85.

Lawsons Equity – Financial Planners Malta

Wealth building – The 3 building blocks of wealth growth

When it comes to building wealth, it is important to understand where you see yourself now and where you want to realistically be in the future. Are you an aspiring millionaire or content with a comfortable lifestyle and health retirement pot?

To one person, wealth may mean having millions sitting in your bank account. For another, it could be a portfolio of property, a nest egg, or to some, simply having enough money to no longer live paycheck to paycheck.

The key thing to understand is, regardless of your ambitions, it is important to focus on wealth growth. There are many ways to do it.

What is wealth building?

Wealth growth and saving your money is effectively the same thing. The only difference is that building your wealth seeks to generate its own income over a certain period. Fundamental wealth creation usually relies on financial planning and advice, so that is why we are here.

So how do you build your wealth?

The simplistic approach to wealth growth is:

Make money
Save money
Invest money
Repeat

Although you may ask, is it that simple? Fundamentally, that is all there is to it. However, our job is to look deeper into what’s involved to give you the best opportunity to build your wealth.

Firstly: Make money

Unless you have been born into a privileged life in which you have enough money to never have to work, you have to make money before you can grow it. This could be your salary or your side hustle. As long as you can make money, you’re on the path to build wealth.

Secondly: Save money

If you make enough money to be financially stable, you should save your money in some capacity. Not only is it wise to have an emergency fund or nest egg for a rainy day, but saving is also an excellent way to fulfil your short-term goals. Many believe that saving is the hardest step in wealth growth, but rest assured that starting is the toughest part.

Monthly budgets are a brilliant way to manage your savings. By setting yourself a personal budget, you can make sure you have small sums of money to tuck away monthly. Regular small savings can become one huge pot over a long enough period. For example, putting away £200 a month is £2,400 yearly – so after five years, you could have saved a whopping £12,000… at that’s before investing it!

Thirdly: Invest money

The initial mentality and habit phases to start your saving journey are difficult for some, and perhaps surprisingly not many people get to this step. The reason for this may be the complexity of investing, with an industry full of jargon and terminology making investments feel unapproachable or inaccessible for many. The second reason is cost, some believing that investing is too expensive for their position, or that you have to be super wealthy to invest. Which couldn’t be further from the truth.

Our wealth managers have made the investment journey as easy and digestible as possible for our clients.

Why is investing the final step?

The longer you invest, the bigger the rewards.

This is all thanks to the wonder called compounding. Compounding is what happens when you reinvest your profits so that that money can make profits of its own. The longer you do it, the more money you could make.

Do you have €10,000 to invest?

€10,000 is a big sum and definitely worth investing and allowing it to grow. We are here to guide you on how to invest your hard-earned money.

Think about your retirement

One option with your €10,000 is to build your retirement savings. Never think it’s too early to start saving in your pension pot. It could offer you a very comfortable retirement if you start investing now. The earlier you stat to invest the longer your money has to grow. If you have already established a retirement pot, adding such a substantial amount could significantly increase your retirement income.

Your next question may be ‘where should I put this money’? Your best option may be a personal pension. You can then choose how much you want to contribute. You depend on where you reside, you receive tax relief on every contribution you make.

Many believe pensions are complicated, but they don’t always have to be. With the help of our team, we do the hard work for you, ensuring you get the best returns on your pension savings.

Consider diversifying your portfolio

There is always a risk when it comes to investing, although there are ways to lower this risk. However, if you invest your €10,000, you should always ensure you spread the risk by diversifying your portfolio. Diversification means spreading your investments so that your exposure to any type of asset is limited. This practice is designed to reduce the volatility of your portfolio over time.

Having a range of investments can be time-consuming, especially if you have a busy schedule. This is where we’re to help. Our highly experienced team can choose the right funds to design your investment plan based on your risk attitude.

Try to think about the long-term

It’s a good idea to stick with your investments for the long run when it comes to building your wealth. The longer the investment, the more likely it will be to generate positive returns.

Take example people who invested in the FTSE 100 between 1984 and 2020. Those who held their investments for any 10-year period have had an 89% of making a gain – and this timeframe includes many market crashes, such as Black Monday in 1987 and the Global Financial Crisis in 2008-09.

In the long run, compounding can also dramatically increase your money. Deciding to invest for a few extra years could help see your pot grow larger. In other words, your initial €10,000 could really see many happy returns.

If you would like further no-obligation advice on wealth building and investing a sum of money, our team is here to help.

You choose how much you want to invest. We will then suggest an investment style which works best for you, your desired outcome, and meets your appetite for risk. Our team do the rest. Click here to schedule a no obligation initial consultation with one of our advisors.

Lawsons Equity – Financial Advisors Malta

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.

The value of investments and income from them may go down. You may not get back the original amount invested.

Lawsons Equity Ltd have passported their services across the EU. To see a full list of countries click here.

In the United Kingdom, Lawsons Equity Limited is deemed authorised and regulated by the Financial Conduct Authority. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website.

Market Update

4th June – 11th June 2021

Shares in Europe advanced for the fourth week in a row, to some extent lifted by the European Central Bank’s (ECB) pledge to carry on with its high bond purchases in the upcoming quarter. In local-currency terms, the pan-European STOXX Europe 600 Index ended up 1.09% higher. France’s CAC 40 Index climbed 1.30%, while Italy’s FTSE MIB Index advanced 0.57%. Germany’s Xetra DAX Index was little changed. The UK’s FTSE 100 Index gained 0.92%.

Treasury yields in the Eurozone fell largely, reflecting the ECB’s commitment to continue its bond-buying program at its current pace for another quarter. The central bank forecast also called for inflation to come and subside in well below its target in 2023. UK gilt yields broadly tracked yield in core markets.

The European Central Bank (ECB) anticipates inflation in the Eurozone to rise by 1.9% in 2021, compared to the previous estimation of 1.5%. The central bank’s revised forecast calls for inflation to slow to 1.4% in 2023. The Eurozone economy is expected to grow 4.6% this year and 4.7% next year — in both of these instances, a 60-basis point rise from the ECB’s previous forecast.

In the UK, outgoing Bank of England (BoE) chief economist Andy Haldane warned the BoE could face an inflationary spiral if it does not act swiftly. The economy expanded 2.3% in April, the fastest rate since July, driven by growth in services as lockdown measures eased.

A sharp decline in longer-term bond yields appeared to help push the S & P 500 index to a record high in a week of relatively light summer trading. The decline in yields favoured growth stocks by reducing the implied discount on future earnings while weighing on financials by threatening bank lending margins. The technology-heavy Nasdaq Composite Index outperformed and marked its fourth consecutive weekly gain, while the narrowly focused Dow Jones Industrial Average recorded a modest loss.

U.S. Treasuries rallied through most of the week as many investors sought to unwind positions that would benefit from price declines, as the yield on the 10-year U.S. Treasury note fell to its lowest level in three months. (Bond prices and yields move in opposite directions.).

Japan’s stock market returns were broadly unchanged for the week, with the Nikkei 225 Index up 0.02% and the broader TOPIX Index falling 0.26%. While the economic recovery in the country remains fragile, the government has lifted the coronavirus quasi-states of emergency in three prefectures in the face of steadily falling infection rates and easing pressure on hospitals.

The yield on the Japanese 10-year government bond fell to 0.03%, its lowest level since January, as the U.S. Centres for Disease Control and Prevention announced it was easing travel recommendations for more than 110 territories and countries, including Japan just ahead of the Olympics. The yen continued to hover around the JPY 109.5 level against the U.S. dollar.

Chinese stocks fell for a second week. The CSI 300 Index of large-cap stocks fell 1.1%, while the broader Shanghai Composite Index edged down 0.1%. In China’s bond markets, the trend in yields since late May has been progressively higher. The yield on the 10-year Chinese government bond rose four basis points to close at 3.15% following higher producer price inflation. In currency markets, the RMB (renminbi) finished flat against the U.S. dollar in a week marked by near-zero volatility.

Oil prices reached fresh multi-year highs on Friday, closing out a third straight week of gains on an improved outlook for worldwide demand, as rising COVID-19 vaccination rates help lift pandemic curbs.

Brent crude futures settled at $72.69 a barrel, rising 17 cents after reaching their highest since May 2019. For the week, Brent was up 1%.

U.S. West Texas Intermediate (WTI) crude futures settled at $70.91 a barrel, up 62 cents, settling at their highest since October 2018. WTI was up 1.9% on the week.

Gold for August delivery fell $16.80 to $1,879.60 an ounce. Silver for July delivery rose 12 cents to $28.15 an ounce, and July copper rose 5 cents to $4.54 a pound.

Lawsons Equity – Financial Advisors (Malta)

The importance of an emergency fund

What is an emergency fund, how much should you have in them, and when is it acceptable to dip into it?

We’re going to explore all this in more detail. Please consider, although some figures may be suggested in this blog, your emergency fund savings should be calculated with your personal circumstances in mind. We’re here to help if you have any questions.

What is an emergency fund?

Simply put, it’s money that you keep tucked away ready to be used if something happens out of the ordinary. This doesn’t mean you need it tucked away in cash ready to grab and run, but it most definitely should not be tied into a long term saving strategy, property or investments.

Your emergency fund needs to be accessible and easy to dip into at moments notice, when you need it most.

Why do I need an emergency fund?

It gives you peace of mind to know an emergency fund is there for any expenses that you may not be expecting. This could be anything from a car accident to an emergency vet bill. Although it also ensures you are covered if you ever found yourself unexpectedly unemployed. If this year has taught us anything, it’s to prepare for the unexpected.

We cannot predict the future, which is why we always need to be one step ahead and prepare for the worst. Your emergency fund is there to help when you need it the most.

How much should be in your emergency fund?

There is no rule or set value. Although it is good practice to cover three to six months wages. You may instead choose to save enough to cover your bills for three to six months instead. To work this out calculates how much you spend each month on your mortgage or rent, bills, food, child care, and transport. Try not to include anything that’s non-essential in these calculations. You only need to cover essentials in an emergency.

So, for example, if your monthly expenses came to €3,000 – including mortgage, food bills, utilities, insurance, and other necessities – then your emergency fund should aim to be at least €9,000 to cover three months or as much as €18,000 if you wish to cover six months.

Although, if those figures seem scary, and you’re nowhere near having those figures tucked away. Fear not, because even a few hundred euros in your emergency fund could help you out of a financial crisis.

When to use your emergency fund?

Having an emergency fund is a terrific start. Although sometimes when an emergency occurs, we face the dilemma whether to dip into the fund or not. If the time comes to use it and you don’t, then it hasn’t fulfilled its purpose.

There are many good reasons to use your emergency fund, typically they’ll be unexpected and immediate costs. We listed a few examples above, but these are by no means an extensive list. Everyone’s emergency fund is personal to them, and every individual has different financial emergencies.

We suggest using your emergency fund to cover any unexpected expenses you face. This fund could be used to prevent you having to take on any debt. Although it is always a good idea to apply common sense before dipping into your emergency fund by asking yourself these questions:

Is it necessary?
Is it urgent?
Is it unexpected?

Where should you keep your emergency fund?

We suggest keeping your emergency fund in an easy-to-access savings account. Ideally, one which offers a competitive interest rate. By doing this, your money still has the opportunity to earn interest, but you will still be able to withdraw the cash quickly in an emergency, should you need to.

This account could be a simple cash savings or even a separate current account. The main thing is the money is kept somewhere different to your everyday spending account – for example, your daily use current account – as this makes the emergency fund tiresome to keep track of and is way more tempting to dip into.

How do I build my emergency fund?

If you don’t yet have an emergency fund and want to start building one, then you’re on the right track. This is the process we recommend:

Plan

Firstly figure out how much you want to have in your emergency fund by calculating your expenses, then decide if you are leaning more towards having three or six months saved. An idea is to foresee three months as your first goal. Then you can continue saving to your six month goal from there.

Save

Small and achievable short term goals are a wonderful way to start saving. Try saving 10% of your monthly income if you can. Even starting with €100 will allow you to gradually grow your emergency fund. The worst thing you can do is commit too much. It can make saving feel way tougher than it needs to be. Another option is to automate a regular monthly amount to leave your account on pay day. This way, you’re not tempted to spend the money or have to remember to manually transfer it.

Monitor

Even if you do choose the automated route, it’s still a good idea to check in on your savings. This is where you could think about adjusting how much you put in to align with your goal and factor in other life events. Once you’ve achieved your goal, you may want to look at putting any excess savings elsewhere, or whether you want to keep building on your pot. Also, remember if you do dip into your emergency fund, you need to top it back up!

When to stop saving into an emergency fund?

This question is tough, as there is no right or wrong answer, and you could keep saving and saving. Although we do recommend putting a cap on your emergency fund and separate all other savings for things like holidays, house deposit, retirement etc. With these longer term saving plans, you are unlikely to need access to the money instantly. Therefore, you are best off-putting these ‘other’ savings into accounts with higher interest rates, locking your money into a long-term account. Our advisors can also give you further advice on how you could invest these separate pots of money, which you could allow to grow over a longer period.

Why shouldn’t you invest your emergency fund?

You will remember one of our first points was to stress how an emergency fund needs to be quickly accessible. When it comes to investing, you have to sell everything you hold to take your money from the investment scheme. This may mean you will not be able to access the money as quickly as you need for emergencies.

Also, you have market fluctuations to overcome. Those same fluctuations that allow your money to grow, can also mean you lose money if you do not sell at the right time. In a current account, if you’ve saved €1,000, then you know you can easily withdraw this amount. But with investing, your €1,000 could be worth that today, but fall to €900 the next.

This change in value could make paying for your emergency harder if you end up losing some of your hard-earned money. Remember, investing is not a short term solution or something you can keep dipping into. It’s a lengthy strategy, and our advice is not to invest your emergency fund. It needs to be there ready to dip into when you need it most.

Click here to schedule a no obligation initial consultation with one of our advisors.

Lawsons Equity – Financial Advisors Malta

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.

The value of investments and income from them may go down. You may not get back the original amount invested.

Lawsons Equity Ltd have passported their services across the EU. To see a full list of countries click here

Small changes that can help you to save more money

Many people believe to have more money, they need a pay rise. But what about making small changes to the way you live your life? We have a few tips which can help you to make a few lifestyle tweaks to aid your saving efforts.

Imagine being paid €1 million a month. If only! Although if you end the month and have spent the full €1 million, then your finances are no more in balance than someone who earns a lot less. Therefore, even if you are earning a salary as large as this, the fundamental steps should still be put in place. You still need to save, you still need an emergency fund and (a healthy) nest egg for a rainy day – just like everyone else.

What we’re trying to get at is whether you’re bringing home €1,000 or €1 million a month. There are lifestyle changes everyone should make to help you make the most of your money.

Compare prices of everything

This one is a bit of a no brainer. But the simple act of making sure you’re paying a fair price for an item can save you a lot of money. The best example being your Wi-Fi bill as you are probably on a rolling contract, which may double or even triple after your first year. Always keep an eye on your bills and pop the contract end date in your calendar. It can be a yearly task to determine how much money you could save. It’s pretty liberating!

Buy quality over quantity

The lowest price is not always the best option. Quality can override cost in some instances. For example, buying cheap fast fashion which will not last is a worse investment than buying a classic well-made piece of clothing, which may be more expensive, but last the long haul. Remember, more expensive does not always mean better quality. Do your research.

Eat before you shop

Shopping on an empty stomach is not good for your calorie intake or your bank balance. Studies show that shopping when hungry can make you more likely to impulse buy not only food, but other items too [1]. So no matter if it’s the food shop or some retail therapy, have your breakfast first to save the pennies and make wise choices!

Budget, budget, budget!

Budgets are the best practice in the financial world. Budgeting gives you a better understanding of your money, where it’s going, and what you have left to spend each month, as well as what you have available to save. It doesn’t have to be complicated, and there are many apps which can aid you in keeping track of your budget. You may surprise yourself when you’re more honest with yourself about what you have and what you’re spending on what.

Get savvy with finance automation

Saving money does not have to be a chore. Instead of actively moving money to a savings account each month, you can set up an automated direct debit to save a certain amount each month. It means you don’t have to think about it, and you can steadily build your savings pot month on month. Before you know it, you could have a healthy nest egg tucked away.

Another tip is to use ‘save the change’ automations on your current accounts. Most banks now offer this feature, which means anything you spend will be rounded to the nearest €, and the remaining money will be automatically transferred to your savings account. So for example, if you buy a coffee for €3.50, then €0.50 will be transferred to your savings account. You will be surprised how quickly it adds up!

Reduce meat consumption

This may be something that not many people consider. Although reducing your meat intake has huge health, economic and environmental benefits. Ethical investors, this is one for you. If everyone in the world followed diet recommendations for meat consumption, then the environmental benefit alone could be worth over €272.3 billion[2].

Sell your unwanted items

Are you a hoarder? Are “I might wear it one day” or “I’ll keep a spare” common place in your household? While many first thought is to either throw away or give to charity. You can make money from your old items online. One person’s trash is another person’s treasure. Facebook selling pages or second-hand apps, such as depop are an excellent place to start.

Don’t keep your credit card in your wallet

Studies show that you’re more likely to spend money using cards than cash. And this is intensified by credit cards[3]. The theory behind this is there’s a delay between spending money and the amount being deducted. So, if your credit card already provides a notification when you spend, this may not help you, but if your bill shocks you each month, then this could be a potential solution. Don’t burn a hole in your wallet… or should we say your finances!

These are not short term fixes

Remember these lifestyle changes are no instant fix or boost in cash. Although if you commit to these changes over the coming months, you will start to notice a difference to your bank balance. It is also important to remember that you need to make these changes and follow them through as lifestyle changes to notice a long term effect to your finances. To discuss your situation, schedule a no obligation initial consultation with one of our financial advisers here.

References:

1: https://www.forbes.com/sites/kateashford/2015/02/25/shopping-hungry/

2: https://www.theatlantic.com/business/archive/2016/03/the-economic-case-for-worldwide-vegetarianism/475524/

3: https://www.bbc.com/future/article/20191204-does-e-money-make-you-spend-more

Lawsons Equity – Financial Advisors Malta

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.

The value of investments and income from them may go down. You may not get back the original amount invested

Lawsons Equity Limited is a company registered in Malta with company number C49564 and licenced by the Malta Financial Services Authority as Enrolled Insurance Brokers under the Insurance Intermediaries Act 2006, and to provide Investment Services under the Investment Services Act, 1994.

Lawsons Equity Ltd have passported their services across the EU. To see a full list of countries click here

Market Update

28th May – 4th June 2021

Equities in Europe rose amid optimism around the possibility of an economic recovery. Concerns that central banks may begin withdrawing stimulus sooner than anticipated because of inflationary pressures curbed equities’ advance. In local currency terms, the pan-European STOXX Europe 600 Index ended the week 0.80% higher. Italy’s FTSE MIB Index climbed 1.59%, Germany’s Xetra DAX Index gained 1.11%, and France’s CAC 40 Index added 0.49%. The UK’s FTSE 100 Index rose 0.66%.

Core eurozone bond yields drifted lower as remarks from some policymakers contributed to expectations that the European Central Bank (ECB) would likely choose to maintain the pace of bond purchases at its June 10 meeting. Yields in peripheral European bond markets tracked their core counterparts. UK gilt yields mostly followed the upward move in U.S. Treasury yields.

The major US indexes closed somewhat higher in a shortened trading week, with markets closed Monday in observance of Memorial Day. Energy shares performed best within the S&P 500 Index as oil prices reached their highest level in two years. Consumer discretionary shares lagged, weighed down by a decline in Tesla. Trading volumes were generally light, as is typical of the beginning of the summer holiday season.

After increasing early in the week, the yield on the benchmark 10-year U.S. Treasury note fell back on Friday following the May payrolls report. (Bond prices and yields move in opposite directions.) The broad municipal bond market outperformed Treasuries over much of the week. According to the latest data from Lipper, municipal bond funds industrywide received net inflows of nearly USD 1 billion for the week ended June 2, including strong flows into tax-exempt high yield portfolios.

Eurozone inflation increased 40 basis points sequentially to 2% in May– above the ECB’s stated target of “below but close to 2%.” Higher energy costs were a big part of the increase in consumer prices. Core inflation, which excludes volatile food and energy costs, ticked up to 0.9% from 0.8%.

Japan’s stock market returns were mixed for the week, with the Nikkei 225 Index dropping 0.71% and the broader TOPIX Index gaining 0.60%. Sentiment continued to be weak following the government’s extension of the coronavirus state of emergency in Tokyo, Osaka, and seven other prefectures by three weeks to June 20. The yield on the Japanese 10-year government bond was little changed at 0.08%, while the yen weakened to close at around JPY 110.18 against the U.S. dollar.

Chinese stocks pulled back after recording three weeks of gains. The large-cap CSI 300 Index shed 0.7% and the benchmark Shanghai Stock Exchange edged down 0.2%. Foreign investors bought USD 8.7 billion of Chinese stocks in May, the highest single month this year according to Reuters.

In the bond market, the downtrend in yields took a breather. The yield on the 10-year Chinese government bond (CGB) rose 2 basis points to 3.11%, a relatively high level compared with other major government bond yields. Over the last six months, Bloomberg’s local currency index for CGBs returned 3.4%, while the spread over comparable 10-year U.S. Treasury yields tightened almost 100 basis points.

Most commodities finished the week with solid gains, thanks in part to the better-than-expected US jobs data for May, a weaker dollar and continuing positive news on the health of major economies. Oil rose, gold bounced back, as did copper, iron ore jumped 8% over the week.

Gold swayed after jumping the most in 10 months in May to top the $1,900 an ounce level on worries that a faster economic growth could spur inflation, forcing governments and central banks to tighten policy. Helping was the weekly data on US oil stocks– they rose a touch after a couple of weeks of rises. They fell 5.1 million barrels to around 479 million– still 3% under the average for this time of year.

Brent crude rose 58 cents, or 0.8%, to settle at $71.89 a barrel, after touching $72.17, its highest since May 2019. US West Texas Intermediate crude rose 81 cents, or 1.2%, to settle at $69.62. The session high was $69.76, its highest since October 2018.

Lawsons Equity – Financial Advisors Malta

Lawsons Equity Limited is a company registered in Malta with company number C49564 and Licenced by the Malta Financial Services Authority as Enrolled Insurance Brokers under the Insurance Intermediaries Act 2006, and to provide Investment Services under the Investment Services Act, 1994. Lawsons Equity Ltd have passported their services across the EU. To see a full list of countries click here

Month: June 2021

Market Update

Lawsons Equity – Financial Planners Malta

Why are we striving to be millionaires?

What is the ‘new millionaire’?

Do you need to be a millionaire to be rich?

Lawsons Equity – Independent Financial Advisors Malta

11th – 18th June 2021

Lawsons Equity – Financial Planners Malta

What is wealth building?

So how do you build your wealth?

Firstly: Make money

Secondly: Save money

Thirdly: Invest money

Why is investing the final step?

Do you have €10,000 to invest?

Think about your retirement

Consider diversifying your portfolio

Try to think about the long-term

Lawsons Equity – Financial Advisors Malta

4th June – 11th June 2021

Lawsons Equity – Financial Advisors (Malta)

What is an emergency fund?

Why do I need an emergency fund?

How much should be in your emergency fund?

When to use your emergency fund?

Where should you keep your emergency fund?

How do I build my emergency fund?

Plan

Save

Monitor

When to stop saving into an emergency fund?

Why shouldn’t you invest your emergency fund?

Lawsons Equity – Financial Advisors Malta

Compare prices of everything

Buy quality over quantity

Eat before you shop

Budget, budget, budget!

Get savvy with finance automation

Reduce meat consumption

Sell your unwanted items

Don’t keep your credit card in your wallet

These are not short term fixes

Lawsons Equity – Financial Advisors Malta

28th May – 4th June 2021

Lawsons Equity – Financial Advisors Malta

Search

Categories

Get in Touch.

For the latest Lawson's news and insights follow us on social media

Company

Policies

Company Info