With the X Factor over for another year, what financial lessons can we take from Simon Cowell's reality TV giant?
I’ll be honest; I really don’t like the X Factor. But like many of the people who claim that they ‘hate’ Simon Cowell’s three month ride of whiners, weirdos and wannabes – I have actually caught quite a lot of the recent series.
So in an attempt to draw some practical use from all those hours sat in front of the box on a Saturday night, here are five financial lessons we can all learn from the X Factor...
#1 You don’t have to be an expert to get far!
Case in point: Wagner!
Yes, the Brazilian crooner may sound like an injured animal when he sings but he still beat tens of thousands of people into the final cut.
The same goes for saving money – you don’t need to have a degree in economics or be a financial whizz to be savvy with your cash and make yourself an extra few pounds now and then.
Our how-to guide to setting yourself a budget and sticking to it will help you to save money in the New Year. To find out how to earn some cash from your home, credit cards and by doing nothing at all (honestly!), read our guide to making some extra money.
If you’re hitting the high street in the run up to Christmas you can also earn money on your Christmas present purchases – to find out how read Make money from Christmas!
Find out how to pay less interest on your credit card spending, and kick you debts into touch more quickly
#2 Don’t get too cocky
In all aspects of life, there’s a fine line between gutsy confidence and cocky stupidity – as this gem of a statement shows…
“I want to be a legacy. I’m not sure what type of idol I am as there isn’t anyone out there in the market like me right now. I don’t think there ever has been. I want to be a star in music, film, fashion, arts, medicine, everything.”
That was X Factor loser Katie Waissel – last seen singing in night clubs up and down the country – what a legacy!
Whilst a bit of confidence with your finances is definitely no bad thing, living outside of your means is damaging and could land you in a serious mess. A big problem for many is overspending on credit cards.
Although providers have got stricter recently on who they dish out credit to (you can find out more about this by reading How your bank manager is spying on you), finding yourself with a huge bill and no money to pay it off with is still possible.
But help is at hand, read our guide to paying off your credit card debts for some top tips. Or for a rundown of the best balance transfer cards head to The 16 month 0% credit card showdown.
For the sensible spender, credit cards can be a good alternative to a loan or a savvy way to clear existing debts. You can find out which card is best for you by going to our credit card comparison centre.
#3 Success can come and go
Remember poor old Steve Brookstein? He was the very first X Factor winner back in 2004.
His first album hit the number one spot – but since then everything’s gone a little pear-shaped. In 2007 he appeared on a P&O cruise ship sailing from Portsmouth to Bilbao (along with his X Factor cohorts Chico and Journey South) and has recently set off on a tour of Cafe Neros across the UK.
Success comes and goes in the music business – and it’s exactly the same in finance. And one financial product that is especially likely to ‘do a Brookstein’ in the current dodgy climate is the investment.
But investments shouldn’t involve a huge risk – read Why investing is not gambling to find out why. For more on how to build a profitable investment strategy have a read of Investing favours the brave and How to successfully diversify your portfolio.
If you’re looking to take out an ISA for your savings then you can compare cash, index tracker and fund ISAs by using our ISA comparison tool.
Jane Baker explains why life insurance should be your number one financial priority
#4 Always have a backup plan
A shaking, sweating contestant staggers out on stage in front of the X Factor judges – she’s singing the latest song by the Pussy Cat Dolls – it’s an ambitious choice. Then, mid-song, Cowell stops her with a single raise of the hand.
“What else do you know” he grumbles, at which point the contestant launches into a pitch perfect rendition of I will always love you – by pure chance someone has the backing track on them. Lucky ey!?
Yes, having a financial backup plan is always a good idea. Taking out insurance is a way to guarantee that if anything goes wrong with your health, home, car or holiday – you don’t land yourself in a financial mess.
To find out how to get cheap, comprehensive life insurance to protect your family if the worst should happen read Switch your life insurance policy – quick!.
And you can get a quick, personal quote for all types of insurance by clicking on the links below:
#5 There’s only one real winner
...and it’s Simon Cowell! He is raking it in!
In the same way, if you feel that you’re being ripped off by a big company – do something about it! Don’t be intimidated by the size of the organisation as they probably make thousands every year from customers who are too good natured to kick up a fuss about a rip-off or scam.
To find out how to fight back against big companies read our guide explaining how to complain and get your way and to read about the rip-offs you need to avoid the Christmas head to The eight biggest Christmas cons.
And finally, for all you soap-opera fans out there – there are a few financial tips to be taken from Eastenders as well, find out what they are at Six lessons you need to learn from Eastenders.
More: The best present to give this Christmas | 4 major rip-offs you can fight back against