There’s a change coming at the end of 2012, and it doesn’t bodes well for women drivers. From December 21^st (uncannily coinciding with the supposed Mayan ‘end of the world’ prophecy).

CC 'F0T0Synth' (Flickr)

The European Court of Justice (ECJ) has ruled that gender will no longer be allowed to be considered when car insurance companies work out how much premium people pay.

This has had very mixed reactions, as it represents a big leap for gender equality, but it also means that premiums are likely to increase for women, making people wonder if the ruling is fair.

The current situation

Insurance prices are calculated based on a mix of difference factors, which themselves are based on years’ worth of insurance statistics.

From these stats, insurers have found that female drivers are consistently safer drivers than men. Male drivers often note that “men have less accidents that women, but when we do it, we do it properly”, and there is some truth in this.

Accident levels between men and women are similar in number, but the average cost of a claim for a male driver is higher than his female counterpart. A lady driver might nick the bumper in the car park or scratch the paint when getting out of the car, but a male driver would be more likely to hit an obstacle or write-off his car completely.

What will change

The statistics don’t lie – women are safer drivers, and as a result have been enjoying a discount on their insurance because of it. This makes sense, as insurance prices are based on risk, and if you’re proven to be a lower risk then you should pay less.

This has been common knowledge for a number of years, and a number of female driver-only insurance companies have sprung up to cater for this, and many other insurers offer special rates on women’s car insurance.

However, once the gender ruling kicks in, that data can no longer be used. This will equalise the rates, which will in all likelihood see car insurance for men go down a little, whereas women’s car insurance has nowhere to go but up.

Light at the end of the tunnel

Although it’s something that all insurers have to adhere to, they won’t take this new ruling lying down. In order to keep a more accurate risk profile for their customers, car insurance companies are going to have to look for other ways of assessing drivers.

What you may see in the future is that insurers put far more emphasis on the type of car that you drive, or what occupation you have. From this, we could even see insurance companies rating more favourably for occupations and car models that are predominantly female-centric.

The system will even out eventually, but for the first few months or even years once the ruling takes effect we’re likely to see our car insurance prices see-sawing as insurers try to find the right balance of rating factors.

What do you think about the ruling? Is it about time we had insurance equality, or should women still get favourable rates? Tell me what you think in the comments below.

The age-old advice to never lend your friends money is sometimes ignored but always the best advice in the end. You could be the best and closest friends, but a simple money lend can always go wrong.

It’s along the same lines as: “Don’t move in with your best friend” and “Never go into business with family”. These gems of wisdom are often tried and tested and in some cases, proven wrong. But the average person with average friends should think twice before handing over any cash.

Friends and money come together in awkward situations in various forms and it doesn’t always have to be about a loan. Friends who make different salaries can often forget that one of them is at a lower pay scale than the other. For example, in an episode of Friends, the group is split down the middle on the income ladder and the friends on top don’t seem to notice.

Source: tvrage.com via Jack on Pinterest

Watch the clip here.

Sometimes a loan isn’t welcome, either. The wealthier friend sometimes pays for an item or two without asking. This can be misinterpreted like in this Seinfeld scene when Elaine is just trying to be nice.

Source: 25.media.tumblr.com via Jack on Pinterest

Watch the clip here.

But there are times when a loan between friends doesn’t end in resentment and hurt feelings between friends. In an episode of The Big Bang Theory, Sheldon lends Penny a significant amount of money to help her stay afloat and doesn’t seem to be bothered in the slightest.

Source: sara-stc.livejournal.com via Jack on Pinterest

Watch the clip here.

It might be worth noting, however, that it’s likely Sheldon and Penny’s situation worked out because of Sheldon’s serious lack of social skills and awareness of social protocol. While this situation ended peacefully between the friends, the test subjects are skewed and don’t portray the realistic or likely response to friends entering into a financial agreement of this nature.

Friends and money are bound to collide once in a while, but to save your friendship, it might be wise to seriously consider making any promises, assumptions or deals that one of you might not be able to keep. Enter into an agreement with clear expectations and perhaps even a specific time frame. (And don’t tell your friend, but it might be wise not to expect the whole amount back). This may sound cold and business-like and counter-intuitive when dealing with friends, which supports the point that friends and money don’t always mix.

Has a friend ever borrowed money from you? How did it turn out? Tell us about it in the comments below.

Economics is a funny beast, as much about human perceptions and emotions as it is about facts and figures.

So it’s understandable that financial ministers around the world want to promote a positive impression of their domestic economies, but figures seems to show that the positive talk about Dubai’s economic position are not all hot air.

Farid Karmostaji via Twitter

According to Farid Karmostaji, director of Entrepreneur Development Division of Sheikh Mohammed Bin Rashid Establishment for SME Development (Dubai SME), Dubai is at the start of a new cycle of boom.

Dubai boomed quite considerably at the start of last decade up until the global financial crash and since then it has been fire fighting in an attempt to keep their economic vision on track.

As the risk factor in holding Dubai debt is receding, it seems that Dubai’s fire fighting and consolidation period is over and they are looking to get the fire back into their economy. Karmostaji speaking at the inauguration of Franchise UAE 2012, said:

“We can feel the new frenzy in the number of new shops opening and malls expanding.”

“There is certainly room for more franchisees. Earlier, the concept of franchising was not very clear to some entrepreneurs, but today many local companies are keen to take the franchising route.”

Not only are local emirate businessmen keen to get into the franchising business within the UAE, but there are a good many domestic brands that are now ready to go global, like fast food outlet Just Falafel that towards the end of last year signed a master franchise agreement to roll out 200+ stores across the UK. This signals a paradigm shift and demonstrates a maturity that did not exist a decade ago.

Dubai SME is ready to play a larger role in the development of small businesses by opening the doors to non-Emiratis, offering courses on entrepreneurial and business skills. Consolidating Dubai positions as a go to destination for budding pioneers, helping to boost employment and drive growth.

Away from the SME sector Dubai’s behemoth airline Emirates reported its 24th consecutive year of profit. Emirates acquired a staggering 22 new aircraft last year and are considered to be the world’s fastest growing airline, carrying a record breaking 34 million passengers on flights to Dubai and 115 other destination in 2011-12, up eight percent on the previous year.

For an idea about the staggering growth that Dubai has witnessed over the last decade check out this time lapse video taken from satellite images:

What are your thoughts on the return of a cycle of boom for the Dubai economy? Let us know in the comments below.

From ridiculous interest rates of 1000%+ to poor customer service and tactics bordering on bullying, pay day loan companies get a bad rep.

Image: Philip Taylor PT (flickr)

Putting aside the morals of whether or not they should market quick cash and no credit checks to people with bad credit; they sure don’t make it easy for themselves!

I’ve compiled a list of my five favourite payday loan offers which definitely do not paint them as reliable and trustworthy lenders, with some of them bordering on unethical. Are you ready to be shocked by the marketing tactics these companies employ? Keep reading…

1. The price of love is 1,737%*

Payday lending website Cash Lady was offering up to £300 to make Valentines Day one to remember. Borrowing the £300 for 31 days would mean interest of £75, adding up to a total repayment of £375. Nothing says I love you like 1,737% interest!

2. Don’t put all your eggs in one basket*

If you’ve put all your eggs in one basket over Easter, never fear because Speed E Loans is here to help. I’m not sure how many Easter eggs you could possibly have bought to be in trouble, but offering up to £500 seems a little excessive. I suppose that doesn’t matter if your slogan is “No stupid rules, no paperwork, just straightforward fast cash loans”. Shocking!

3. Bank holiday borrowing

QuickQuid took advantage of the recent May bank holiday with this subtle message, just in case you didn’t know that the banks were closed. Even on bank holiday Monday, you’ll still get your cash within 10 minutes of approval, although I’m not quite sure why a bank being closed for one day means you need to take out a loan at 1,734% Representive APR. I could withdraw £10 from the cashpoint within 10 seconds (faster than QuickQuid) and save myself the expense.

4. Cash from the Chancellor himself*

Taking advantage of the UK Budget update, our friends at Speed E Loans offered up to £500 for their very own Chancellor. How noble of him! This ad is very subtle but it plays on the emotions of people who may struggle more with the new budget in place. Still, they can get £500 in their bank within an hour. I wonder if “No stupid rules” extends to actually repaying the loan?

5. Get your friends into debt

Both QuickQuid and Wonga offer up to £20 if you refer friends on Facebook, Twitter and e-mail to their service. Lots of businesses do have a referral service and it can be a good sales driver, but many believe that these payday loan providers are targeting young people who are not financially savvy with their social marketing. Especially when you consider that a £400 month long loan with Wonga costs £119.98 compared to just £5.88 on a Barclaycard or £30 for an authorised Bank of Scotland overdraft. Still want to refer your mates to a payday loan?

Have you seen any interesting payday loan ads, banners or offers? If so, let us know in the comments and we’ll add them to the main article.

This article was written by finance blogger Ian Nuttall. His most recent article is 58 Ways to Get Out of Debt and he occassionally pokes fun at payday loan companies.

The information provided in this blog is not intended for trading purposes or advice. The information contained herein should not be used for financial decision making. LBi bigmouthmedia is not responsible for any informational errors or actions taken as a result of the information provided. A full disclaimer can be found on our about page.

Each month we look at how you can successfully turned your hobby into your profession.This month we continue this feature with a look at beauty therapy.

Here we will be discussing the most important factors and issues you may come across when setting up your own business as a beauty therapist.

Image Pinti 1 via creative commons license

What you should know

To become a qualified beauty therapist you must sit a professional qualification at a college. It is important that you do not perform treatments on clients without this qualification.

Normally this will be a full time college course; however, modules can usually be broken up so that you can learn part-time.

This is a client-facing profession so being friendly, easy to talk to and professional is very important.

As well as having solid beauty therapy skills, you will need strong sales skills to make your freelance career successful. This is because you will need to convince your clients to try a wider range of beauty treatments and refer your services to their friends if you want to increase your business income.

It is also important to be mobile, as you may be travelling to lots of different clients’ homes during your working day, so having a driver’s licence is essential.

Areas of specialism

When you’re setting up a freelance beauty therapy business, you should research which treatments are popular and which treatments your competitors are offering to help you decide on the services you should provide.

You should also think about your own strengths and even about offering some unique or unusual services to help you stand out from the other therapists.

You will also need to consider what equipment is needed to perform each treatment – remember that you will be visiting clients’ houses, so this equipment needs to be portable.

Some examples of freelance beauty treatments and other useful resources to help you start you own business can be found on our business start-up Pinterest board.

Running the business

It is vital to make sure you have insurance cover before you carry out any beauty treatments. There are several organisations which offer specialist liability insurance for beauty therapists.

If you’re going to join an organisation like BABTAC, then your membership might include a good insurance package.

Making sure you are paying the correct amount of tax can be a challenging task. The best thing to do is to check the Inland Revenue website and make a call to the helpline for the newly self-employed  (0845 915 4515).

You will be responsible for keeping all of your receipts and records for six years to complete your annual self-assessment tax form. Keeping your own accounts can be quite a time-consuming task, so look into small business accounting software which can simplify the whole process.

Summary

Becoming a freelance beauty therapist is a great idea if you like working with people and want flexible working hours. You will be expected to keep up to date with new fashions and beauty trends, so this is a career in which you will be constantly learning new skills.

The entry barriers to establishing yourself in this industry are relatively low, and experience will be your greatest asset.

If you liked this guide to setting up as a freelance beauty therapist then you can find it in a downloadable format via our PDF sharing account. Do you have any other top tips for starting out as a freelance beauty therapist? Let us know by leaving a comment in the box below.

There was sad news for the UK high street yesterday as Clinton Cards was put into administration by its largest supplier.

Image by comedy_nose, via flickr

The familiar card shop with over 8,000 staff and over 750 stores had recently seen its bank debt bought up by American Greetings, the second largest player in the world greeting card market after Hallmark.

When it became clear that Clinton would be unable to meet the repayment demands issued by the major US firm, moves to put the UK retailer into administration began.

Over the past few months speculation over the future of Clinton Cards had been growing. The retailer had seen its losses balloon to £130 million since 2004.

There seems to have been a variety of factors which have contributed to the company’s difficulties including: large rent bills, competition from websites offering personalised cards and people sending birthday messages over Facebook.

Clinton Cards was founded in 1968 by East London entrepreneur Don Lewin who quickly built up the business before floating it in the London stock exchange in 1988.

During the 90′s the company embarked on an aggressive expansion strategy; the acquired over 400 shops during this period from several competitors including Hallmark Cards, Carlton Cards and GSG Holdings limited.

Recently Clinton had been pursuing a cost cutting policy including the closure of a number of stores. However, it looks like this process hasn’t had enough of an effect meaning that Clinton was unable to meet some of its bank debt repayments. At this point American Greetings, Clinton’s largest supplier and non-bank creditor stepped in to buy up the debt.

The bank debt was around £35 million and Clinton already owed American Greetings over £15 million meaning the UK firm are in debt to the Americans to the tune of over £50 million.

There has been speculation that the buying up of the debt and the move to put Clintons into administration could be precursors to a takeover by the American firm.

It is likely that the administrators will embark on an aggressive cost cutting program including significant redundancies and the closure of many of the underperforming stores. This would likely leave the company in a much healthier state.

With American Greetings being by far the largest creditor and owning such a high proportion of Clinton’s debts, they would be in an extremely strong negotiation position if they made a move to take control of the UK chain.

It’s certainly worrying times for employees of the firm, I wonder how many of them will be receiving sympathy cards from family and friends?

Can you see light at the end of the tunnel for Clinton Cards? Would a takeover by American Greetings be the best way forward? Let us know your thoughts in the comments box below and feel free to leave messages of support.

Source:Channel 4

It is the biggest drop since March 2011 and footwear sales were the lowest since 2008 according to figures released by the British Retail Consortium (BRC). Yahooreports:

“Online retailers also saw demand slow, while supermarkets felt the pain despite the cold weather boosting sales of winter warmers – hot drinks, porridge, meat for stewing and soup.

However, there was a silver lining as sales of floor coverings and homewares, such as bedding, linen and lighting, received a boost as the depressing weather prompted people to give their homes a facelift.”

The site also reported comments from BRC director general Stephen Robertson who said:

“The wettest April since records began has put a dampener on retailers’ fortunes.

Consumer interest in summer fashions and outdoor products was washed away by constant downpours.”

The fact of the matter is that retailers are bearing the brunt of the squeeze on consumer spending. However, it’s hoped that events such as the Queen’s Diamond Jubilee, and the Euro 2012 football championships will boost the national mood and inspire more spending.

People are not spending their money on gardening products such as lawnmowers, plants and tools at the moment, but rather are concentrating on smaller indoor DIY tasks. Money is not being spent on more expensive items such as fitted kitchens and bathrooms.

How is the continuing wet weather affecting your spending habits? Tell us in the comments below.

I believe that art is one of the best ways of investing your money. I currently can only afford buying work from small independent artists, but if you have the cash, I would recommend spending it on a promising emerging artist.

Not sure? Well, have a look at the most expensive works of art.

Edvard Munch

Edward Munch's The Scream via Wikipedia

Edvard Munch’s The Scream has become the most expensive painting sold at an auction. It was sold for $119,922,500 at Sotheby’s Sales on 2 May 2012. This work of art is one of the four versions of The Scream (tempera on cardboard, pastel on cardboard, tempera on cardboard and crayon on cardboard) and the only one that is privately owned.

Pablo Picasso

Picasso's Nude, Green Leaves and Bust via Wikipedia

Picasso’s pieces have reached incredible prices at some of the most famous art auctions, but his painting ‘Nude, Green Leaves and Bust’ held the record for the most expensive work of art until a week ago when The Scream was sold. Picasso’s painting was sold for $106,482,500 two years ago at Christie’s in New York.

Alberto Giacometti

Giacometti's L'homme qui marche i via The Kick it Spot

Although paintings are the most popular pieces at art auctions, sculptures such as ‘L’homme qui Marche I’ have been sold for record prices. Alberto Giacometti’s work of art reached £65,001,250 at Sotheby’s in London 12 January 2010.

Jeff Koons

Koons' Hanging Heart via Arch Daily

Jeff Koons holds the current world record for selling the most expensive piece by a living artist. The American artist sold one of his five ‘Hanging Heart’ pieces for $23.6 million in November 2007 at Sotheby’s New York.

Freud's Benefits Supervisor Sleeping via Wikipedia

Before his death in July 2011, Lucian Freud held that record with ‘Benefits Supervisor Sleeping’, sold for $33 million just a few months after Koons’ ‘Hanging Heart’ was sold.

Andreas Gursky and Cindy Sherman

Although photographs aren’t usually sold for the same money as paintings or sculptures, photographers Andreas Gursky and Cindy Sherman have several of their works on the list of the most expensive photographs.

Gursky's Rhein II via Wikipedia

Andreas Gursky’s ‘Rhein II’ sold for $4,338,599 in November 2011 at Christie’s New York and Cindy Sherman’s ‘Untitled #96’ sold for $3,980,600 in May 2011 at Christie’s New York as well.

If you had the money, which work of art would you like to buy? Let us know in the comments section below!

Last Decemeber, comedian Louis CK sold his self-produced special Live at the Beacon Theatre online from his own website for $5. Though this may not seem particularly revolutionary, it was.

Image by Kelly via Wikimedia Commons

Louis has explained this endeavor as an experiment, saying:

“The experiment was: if I put out a brand new standup special at a drastically low price ($5) and make it as easy as possible to buy, download and enjoy, free of any restrictions, will everyone just go and steal it? Will they pay for it? And how much money can be made by an individual in this manner?”

Well, Louis ended up making $1 million in the first two weeks of sales. Incredible! After all, it wasn’t too long ago that Louis was entertaining audiences with his money woes.

In the wake of Louis’ success, other comics like Aziz Ansari and Jim Gaffigan have follwed suit, selling their own self-produced specials via their websites rather than putting them in the hands of a television network or an online steaming company.

Louis CK’s business model may seem a bit obvious. When I first heard about his success, I was  surprised that no one had thought to do it like this before. But even though it may seem so simple now, the decision to forgo the usual business model was actually a major risk. Louis CK explained the risks on his website:

“The risks were thus: every new generation of material I create is my income, it’s like a farmer’s annual crop. The time and effort on my part was far more than if I’d done it with a big company. If I’d done it with a big company, I would have a guarantee of a sizable fee, as opposed to this way, where I’m actually investing my own money. “

So, the trick to this method is that it requires saying ‘no’ to guarenteed money. Instead, you must back yourself to be able to bring in sales. It’s risky. It takes chutzpah. Do I think it will stick around? Yes.

A decade ago, this business model may not have been feasible. But with the power celebs and entertainers now have to communicate directly with their fans (yep, social media. you guessed it.), it’s clearly the way forward.

What do you think of Louis CK’s business model? Let us know what you think in the comments section below.

The lovely people at the HRMC are turning their eye towards the internet to find to try and catch a lot of people who have been avoiding declaring their income.

According to the Guardian somewhere around 32,000 people have been trading on the site without declaring their earnings.

Image by: liewcf

The letters were expected to be arriving with traders from the 2nd of May and they would be given until the 14th of June to come forward. If they do not come forward before that time then they will be fined between 40% – 100% of the tax owed instead of 10% – 20% if they come forward now. There may also be jail sentences if people ignore the fines.

How is it possible to monitor between people who are selling now and again on ebay and those that are trading? Obviously there is a huge difference between a few things being sold and a couple of hundred but there are some real ebay addicts out there who may not know that they could be considered traders.

And what if people have numerous accounts and appear to be doing a lot less selling than they actually are? Is there a way to stop them? It is good that tax dodgers are getting called out but there has to be a clear idea of who they are after.