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Fergus will be back on the John Beattie Show on BBC Radio Scotland on Wednesday just after the 1pm news with some great tips to help organise your money and understand your consumer rights. This week he'll be looking at the best way to spring clean your finances at the beginning of a new tax year. Catch up on previous shows here

Moneysucks for musicians

Have a look at the first part of our new series on how musicians can best maximise and protect their income from their own words and music.

Do you buy apples when you need oranges?

Every penny that is spent on a daily, weekly and monthly basis needs to be well spent these days. Making sure that we get value for money is not the same as buying the cheapest you can find, and we need to be careful that in the hunt for good value we don’t actually end up getting poor value because we’re trying to spend as little as possible.

So many comparison sites are all about the ‘cheapest’. Cheap car insurance, cheap credit cards, cheap electricity. Table after table compares the amount you spend without necessarily giving you a true comparison by looking at what you get for your money.

Let’s take a really simple example. Third Party car insurance is cheaper than Comprehensive cover, there’s no doubt about that. Why? Because if you have an accident only the car you hit is covered, you have to pay for any damage to your own car yourself. Does that make it better? Well in a small number of cases where you have a car that is worth very little you might take the risk, but in most cases Comprehensive cover will represent better value for money.

Here’s another. House insurance that doesn’t cover your personal belongings outside the house will cost you less than house insurance that covers your phone if you leave it on a bus. It costs less but is it as good for you? Will it do what you really want it to do?

We should apply the same logic to everything else that we spend money on. We’ve been sold on this idea that we need to look for the cheapest possible price on everything we buy.

But cheapest doesn’t always mean best. Make sure you’re not comparing apples with oranges.

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It looks as if the Financial conduct Authority might be about to take action to help so-called 'mortgage prisoners', borrowers who have loans with companies that are no longer trading.
60 Second Tips

In a brand new series listen to and watch Fergus Muirhead here as he explains common money and consumer issues in less than one minute.
This series will build up over the next few months into a valuable library of money and consumer tips, all delivered in a simple and straightforward way.

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