As 2020 finally draws to a close we look at 10 ways to help improve your financial situation. Following these simple financial steps can really pay off over the long run and give you greater peace of mind for the coming year. Remember tax rules can change and their benefits will depend on your individual circumstances.
- Review your outgoings, create a budget, and stop any unused subscriptions. It’s amazing how many clients are paying out each month for services they no longer use. Have a look at your bank statements for the last couple of months and ensure you don’t have anything you no longer need.
- It’s always good to have a retirement age in mind even if it’s a long time away in the future. It will focus your mind to get you into the savings habit if you have a future goal in sight and the earlier you start saving, the more achievable your goal may be.
- Make sure that where possible you have some money set aside for emergencies. Whilst not always possible, try to have 6 months of expenditure set aside in cash for the unexpected.
- Don’t be afraid to talk about money with friends and family or an expert. There is a clear link between financial health and mental health and it’s important that you do not bury your head in the sand when faced with financial stress.
- Review any debts and ensure that you are clearing the most expensive ones first.
- If you have a number of investment products, make sure they are working for you. Check the investment performance, costs, platform functionality and make use of tax-efficient wrappers such as pensions and ISAs on an annual basis where possible.
- Remember that investing is for the long term and whilst it’s not always easy to see your investment value falling during difficult times, it’s important to remember that you can’t time the market and it’s about time in the market. It’s also important to know the impact of inflation and how that can affect the real long-term value of your money.
- Business owners should utilise their company to fund their pension for retirement where possible and have business protection in place.
- Protect your family by ensuring you have the appropriate levels and types of life cover in place.
- Make a will and potentially put in place a power of attorney as you never know what is around the corner.
If you’re interested in finding out more and would like a no-obligation chat to discuss your options please contact Paul directly at firstname.lastname@example.org