money scripts: voting (part 2)

To me, a money script is something that I believe I should do in connection to money, based primarily on something I absorbed as a child. I wrote earlier, that I was taught that it is important to vote, and this can actually provide financial benefits. As there are local elections coming up soon, I thought I'd discuss my second money script in connection with voting. This concerns who you should be voting for.

The script that I have, is that you shouldn't vote for the person that will make you best off, but for the person that would be best for society as a whole. This is generally how I try to vote. If I think about it rationally, do I think that this is a good idea?

I try to be a good person as I live my life (as I'm sure most other people do). As part of this, I realise that I am very priviledged in comparison with people in the rest of the world. In fact, I'm priviledged in comparison with a lot of people living in my own country. A good person would try and do something about this and improve other people's position. I'm trying to be a good person, so I should try and improve other people's position and one of the opportunities I have, is through my vote. So, overall, I think that I should vote for the benefit of everyone, not just myself.

How does this impact on my personal finances? Well, it means that I sometimes vote for people and policies that will make me worse off financially. But it wouldn't be better for society if I was a net beneficiary, so once policies are decided, I seek to minimise their negative effects on me. For example, I accept that raising the state pension age is beneficial to society and vote in favour of it, but to compensate, I plan to save and invest more so that this won't harm me.

What do you think? Should a person interested in improving their personal finances vote for policies that will benefit them, or not?

money scripts: voting (part 1)

In common with a lot of people, I’ve grown up with some scripts relating to money. By this I mean things that I have absorbed in childhood that I have never questioned. Some of those are related to voting.

first voting script
As a child, the importance of voting was drummed into my head. Interestingly, not because that’s how to get your voice heard, but because men and women died trying to get universal suffrage in Britain. Now, that’s all well and good, but how is it related to personal finance?

Well, in order to vote in the United Kingdom, you have to be on the Electoral Register. The electoral register is also used by credit reference agencies to confirm your address and not being on it damages your credit score. So there we go, registering to vote will improve your credit score.

the battered red briefcase

So, last week Gordon Brown delivered what is widely touted as his last budget before becoming Prime Minister. And as I'm sure all interested parties have heard, he left a stonking great big change until the end of his speech. The basic rate of tax has been lowered by 2p in the pound to 20%. Hooray!

Well, all the commentators pointed out that we'll be paying for this with the abolition of the 10% tax band. Still for people in my income bracket (earning between about £18,000 and £33,000) we'll be better off than before. For those paying income tax, but earning less than about £18,000 you'll lose out and be slightly worse off than before. Earning between £33,000 and £39,000 will see you worse off due to changes in NI bands, and earning between £39,000 and £43,000 will see you better off as the higher rate tax threshold has been raised. Earning above £43,000 and paying higher rate tax should see you paying close to the same amount in tax and National Insurance combined.

I'm not sure that I see the point of this tax change, even though it makes me better off. Its not a Robin Hood style tax cut (taking from the rich to give to the poor) as the benefits are unevenly distributed. I guess the tax-cutting headlines look good though. It certainly seemed to take the wind out of the sails of the Conservatives, which is probably the main target.