Financial Advice & ALEX
Interview with Kate Woosey
Dear readers, welcome back to our journal. Today we want to underline the importance of managing your finances properly, being aware of your options and remind you that you can thrive even in challenging times such as this current one.
With collective effort, the Cluster team invited and asked financial advisor Kate Woosey a few questions about the world of design and finance coming together.
Her experience within the design industry sparked a shift in her practice to develop and re-ignite the financial sector providing easy - accessible financial advice.
Cluster Crafts journal will be looking deeper into bringing you more insights on the financial aspect of being an artist, the creative economy, how to manage your funds and monetary opportunities. Stay tuned.
What advice can you offer small businesses and creative practitioners in the financial impact of COVID-19?
Firstly, I would say look at your budget. As we aren’t going out or travelling for most people their monthly costs have reduced right now. If you’re still being paid this pay offer you some relief and you could funnel that extra cash into paying down debt or adding to savings.
Look at the benefits you’re entitled to the government has put in a number of things in place such as halting business rates and offering more cash for business loans. Elsewhere, there are schemes in place such as the Self-Employed Income Support Scheme (SEISS) and the Coronavirus Job Retention Scheme which is open to company directors and owners. Both are set to pay up to 80% or £2,500 (whichever is lower) of your income if you have been affected by COVID-19.
The deadline for self-assessment tax return has also been extended until January 2021, so you may look to use some of your tax savings to carry you through until the SEISS is live when you can repay that money back into your tax savings. Check Universal Credit and local council initiatives too.
Your early career began in PR for the Design and communications sector. What inspired the transition into financial advice?
Design is my passion, but I felt my values shifting on what I wanted to contribute with my work. As a freelancer in the design industry for a few years, nobody spoke to me about the importance of income protection or having a pension. As I was getting serious about my future, these issues became my priority and I felt I didn’t have access to the advice I needed.
At the same time, I was heavily researching into how millennials are being financially affected in the long-term and the impact of the UK’s advice gap. Adding to this gendered issues for women in regards to involvement in financial planning, investment and pensions gap. This led me to think how can I help, and I took the considered decision to retrain as a financial adviser.
There was also a cultural shift happening with more publications tackling money issues, alongside writers I admire such as Alex Holder, Vicky Spratt, and Laura Whateley.
Do you feel there is a particular lack of financial support and advice for those in the creative sector? How does Alex Financial Services pave the way to offer this support?
I think there is a wage issue within the creative sector, while you can reach a good income at a certain level, for many new businesses and young creatives there are often scarcity periods. I also don’t think there’s enough financial literacy available in the industry either through events or education. You can be a skilled designer, but that often doesn’t come hand-in-hand with wanting to be a financial mind.
Coming from the creative field is a key driver in why my clients want to speak to me. I have a start-up background, not big business, and my clients know I won’t belittle them or have no understanding of what it’s like working in this environment. I like to bring this knowledge to my approach and feel it allows me to make better recommendations.
Financial advice could seem exclusive to some, how has Alex broken down this ‘stigma’?
In a way, I think that there will always be a stigma with financial advice, through a lack of knowledge and the way it’s been marketed by some of the largest companies.
I’ve spoken to clients who’ve found some professionals make them feel bad for their salary or because they’re choosing to buy a house on their own. This is not how I work. At Alex through education, advice, and planning I want to help my clients find financial security and that is often through small steps. That’s why I have no minimums for investment and fair pricing.
For a business start-up or creative individual taking the path of self-employment, when is the ‘right’ time to look for financial advice?
It’s anytime. Financial advice is an ongoing process, with many advisers and clients working together for their lifetime. Many financial advisers will give at least their first meeting for free, if not more. So it is worthwhile building up that relationship now even if you don’t work together straight away as they often will give general advice/tips to get you started, then provide structured financial advice if there is a need.
It can be crucial to speak to someone before setting up a business or self-employment. One issue is many people set themselves up as a limited company when a sole trader will do while you establish yourself. Likewise, many clients I speak to haven’t considered the wider the financial implications of working for yourself, such as no critical illness or income protection cover for themselves.
As a small business, this takes form as group benefits and the costing of this should be factored into any new business.
Thank you for reading,
Cluster Team
Portrait Kate Woosey | Photography Kat Green
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What does the future hold for Alex, how do you see the next few months unfolding?
The next few months for me, like any small business, is trying to grow my network and try to reach as many people as possible who may feel like financial advice is inaccessible or need to rethink their financial situation.
I think something like COVID-19 happens, unfortunately, showcases how vulnerable we are and reliant on living pay-check to pay-check. Something I work a lot with is what would you or your family do in the case of not being able to work due to illness. From what I’m seeing now, people are more willing to access their financial gaps.
If you’d like to speak to me about any financial issues, or to book in a meeting, you can get in touch with me at hello@alexfs.uk or on instagram on @_alextalks_.