Sticking loose change in a bottle is one thing, but adopting a range of regular money management habits will help you achieve a much healthier financial future. Start now to achieve your goals!
How good are you with your money? Do you make regular savings, keep an eye on budgets and look for the best deals on monthly utility bills? If not, you should do.
The old saying “Look after the pennies and the pounds will look after themselves” has always stood the test of time. Put simply, it means that nothing is insignificant. Concentrate on the details. If you can cut costs without losing quality then do it. If you can save a few pounds by changing a supplier, do it. It all adds up.
Here’s a list of financial goals you should consider if you want to make the most of your money and longer term investments:
Commit to regular savings
What we spend fluctuates each month. Unexpected bills crop up, a holiday offer looks exciting, and a bargain purchase catches your eye. The secret is being disciplined and earmarking a percentage of your weekly/monthly earnings to be transferred into a savings account or an ISA. Leaving cash in your current account rarely works. It sits there, winking at you, asking to be spent. Commit to ten or fifteen per cent of your salary and tuck it away the day you get paid.
Start THAT pension!
Too many people put off starting a pension. There are always other priorities. But you’ll regret it in the long run. Whether it’s through work (they might contribute, too) or a personal scheme (you could get tax relief), there are easy ways to get up and running. It all depends what you want to achieve in later life, when you retire. That’s the kind of thing Logic Wealth Planning can help you with. We look at your lifestyle, help you to plan and recommend how investing in a pension fund will pay dividends when you stop working. What are you waiting for?
Get rid of debts first
If you are saving small amounts of cash but paying monthly interest on credit cards and hire purchase deals then you’re probably losing money. It will take much longer to achieve your goals. One step forward, two steps back. The charge for credit is always higher than savings interest. Work out a payment plan, stop using the credit card (chop it up) and pay down those costly debts. You’ll be surprised how much you’ll save in interest payments. When you’re done and clear of debt, carry on saving the same amount you were paying off each month. Easy. Stick to it.
Give your spending habits a makeover
What on earth does this mean? Take a look at what you spend each month. We all like treats, but are you spending too much on take-aways, and enjoying a cake every time you pop into the local coffee shop? Chop out one ‘luxury’ item each month. Then run through your regular outgoings. See what deals there are on switching bank accounts, changing energy supplier or your car insurance. Why pay more than necessary? If you do manage to save a few pounds each month, add that to what you start saving.
Start a rainy day fund
Isn’t this the same as regular savings? No. A rainy day fun should be for emergencies, such as unexpected car repairs, a new boiler or maybe that surprise trip to see relatives. This should be easy-to-access cash. If you really need it, you can withdraw it and use it. Think of it as a buffer, a fund that means you don’t have to dip into an overdraft or put something on the credit card when something unusual crops up.
If you’d like information or advice with any aspect of saving and investing then we’re here to help. Give us a call and we’ll arrange a convenient time to discuss what you’d like to achieve in life.