January is a great time to review your finances and make sure everything is running smoothly. From savings and pensions to tax and protection, the changes you make today could set you up for a more prosperous 2022 and beyond. A financial adviser can carry out a thorough assessment of your personal and financial circumstances but, in the meantime, here are six financial resolutions that could help you get your new year off to a flying start.
Are you getting the best deal?
Rising taxes and soaring energy bills are having a huge effect on the cost of living for UK families and as it stands inflation is currently over 5% and could go higher. Whilst there are limited deals currently available to help reduce your energy bills and should look at all service providers you use to see if there are better alternatives available. Don’t be afraid to challenge your car insurer or mobile phone provider if they put up your premiums and look for alternatives elsewhere
Review your debts
Pay off high-interest credit cards or loans first. Making minimum payments is a trap that could mean that one small purchase could literally take decades to repay! Clearing those with the highest rates first and moving to 0% deals will save a lot of money over the years. Don’t be too hasty to cut all your credit cards up though, there are benefits with protection on payments, credit scoring and for use in emergencies.
Protect your status quo
It‘s fair to say that this year has shown us that anything can happen!! Ensure you have the right protection policies in place to keep you moving towards your life goals should you hit bad luck. Don’t fall into the trap of letting annual policies auto-renew as prices will almost certainly creep up and you’ll be paying well over the odds before you know it.
Build an emergency fund
Once rid of those high-interest rate debts and your protection policies are in place, it’s also important to have an emergency fund of at least 6 months’ outgoings that will be a buffer against debt in the future or cover you in emergencies. With interest rates at historic lows and talks they might go even lower, it’s important to review your savings and investments to make sure you are getting the best returns possible, as these compounded returns make a difference!
Organise and understand your pension and retirement provisions
Nowadays it’s not uncommon to have various jobs in our working lives and consequently, this leads to various pension pots all over the place. Some of these will almost certainly be in outdated plans with poor investments or expensive products. Get them all together to understand where you are – you may be pleasantly surprised, or it may serve as a kick up the backside to start saving more!
Tax-year end planning
This year seems to have flown by, so the 5th of April will come round too in no time. Before then make sure you utilise all your annual allowances such as pensions, ISA/LISAs, capital gains tax, and gifts.
As ever, if you have any questions about the above, or we can be a help in any way, please email us at email@example.com