Train operators raise their prices on the 2nd January every year, with the rise in fares being far more punctual than their trains. This year my partner was facing a price hike of 6%, but by buying her ticket a few days before the increase she was able to save herself this additional cost. 

An annual season ticket also works out cheaper for her as it’s discounted slightly compared to buying monthly season tickets, although this saving is generally eroded when you consider the cost of capital and potential savings whilst you might be holiday. That said she is still better off not having to pay the increased prices.

So what’s in it for me? Well one of the benefits of her season ticket is that she gets 1/3 off rail travel for both her and up to 3 other passengers travelling with her. And as we travel into London by train quite frequently this should help me save a few pounds over the year.

Now normally the stock market is a good place to look for good returns but given the current instability in the markets I’d prefer to invest my money into something a little bit safer.

Now you might not thinks banks are as safe as they were but seeing as the Government seems to be guaranteeing all savings they are still a safe bet. However interest rates have plummeted in the last three months from paying an average of 2.46% in September to just 0.81% in December (Source: Bank of England). And it’s likely to only get worse as this is before January’s 0.5% interest rate cut.

There are however still some good rates around from banks that are still keen to attract deposits, particularly if you are willing to lock away your cash for a fixed period or commit to regular savings. A regular saver account would fit my needs perfectly as I can pay in the money I earn from my adventure each month, and getting in quick before the rate cut earlier this month I was able to bag myself an account paying 7% over the next 12 months.

I’m limited to deposits of £500 per month which means if I make four equal deposits of £500 each over the next 4 months I’ll earn £95.55 interest on just those 4 deposits alone (assuming basic rate of tax).

Then anything I earn after April can be deposited in the regular saver account each month, but seeing as interest is only paid on amounts actually in the account they’ll earn far less interest as there wont be as many months left.

And with a standing order setup to make the deposit each month, all my work is done!

On Monday the FTSE300 ended the day more than 20% down from its peak so we now officially have a ‘bear market’. With the US markets closed for Martin Luther King Day Europe and Asia continued selling into Tuesday until first rumours spread and then confirmation came from the Fed that they had decided to make the biggest rate cut since 1982 to prevent a huge sell off in the US.

Following the Fed’s intervention European markets were able to regain some ground, with Asia following suit early on Wednesday. Terrible results from Motorola and negative guidance from Apple sent worries of a slow down in consumer spending and the market downwards again.

Then for apparently no reason stocks started to rise. Traders were clearing coming to the view that panic had lead to the markets being oversold and were backing a bear market rally.

The markets in Asia continued to rally on Thursday before SocGen broke the news that a rogue trader had cost one of France’s biggest banks 4.9bn euros (as if this week needed more news!). Whilst the news of this huge loss was shocking the markets put a positive spin on the news in believing that it may help to explain the large falls earlier in the week.

Into Friday and the markets continued to regain some of the losses largely on the back of some reports in the US that unemployment was not as bad as feared. Whilst the markets seem to be on the path to recovery there is still a lot of uncertainty out there and that could drive further sell offs next week.

However if you look into share price moves in more detail it is the so called defensive stocks (those that might withstand a recession) such as utilities and healthcare that suffered the greatest falls at the end of the week, and technology stocks that rose the most. So in summary it is anyone’s guess what happens next, but see no reason not to expect more volatility.