Top 10 Financial Tips for your 2017 Resolutions
In addition to the traditional New Year’s resolutions to lose weight or stop smoking, people often resolve to sort out their finances with ‘saving money’, ‘paying off debts’ and ‘investing smarter’ being common focus areas.
Here’s 10 tips to get started!
Keep a spending diary – Before you start sorting out your finances you need to know where all your money is going.
Set a budget – Do you really need to spend £3 a day on a fancy coffee? Make sure your budget is realistic though and allows you treats otherwise it will instantly fail!
Increase your income – One of the easiest ways to improve your finances is to boost your income. Could you increase the price you charge your customers? If you work for someone else, could you earn a pay rise or a promotion? If not, look for a new position or, if necessary, take on a part time job.
Maximise your perks – Many bigger companies offer valuable staff benefits such as pensions, savings schemes and staff discounts. Make sure you are taking full advantage of all of these benefits as they are equivalent to an extra pay rise.
Review your mortgage – Check you have the best possible deal as this could save you literally hundreds of pounds a week. If affordable you should look to increase your monthly repayments as this could help you knock years off your mortgage.
Repay your debt – Starting with the most expensive interest rate using the savings found from your spending diary and your new budget.
Insure yourself – You and your wages are your most important asset, don’t forget this and make sure you are insured against ill health or death. contributions. It’s never too early to start saving for your retirement. You want to enjoy your retirement drinking Chardonnay in the south of France not eating baked beans on toast in Cleethorpes!
Build an emergency fund – The reason many people get into debt is because they do not have any savings to start with. Ideally you should have an emergency fund of between 3 and 6 months’ expenditure.
Invest – The stock market has historically given much better long term returns than deposit accounts and with savings rates at historic lows consider becoming an investor rather than a saver.
And finally …resist Temptation! – Avoid the temptation to go mad in the January sales – remember that even with up to 50% off in the sales; buying a £100 item for £50 should still be seen as spending £50 rather than saving £50.
WE CAN HELP – If you’d like friendly professional help and advice on Mortgages, Pensions, Insurance or Investments – or any other financial matters – we’ll be happy to help and an initial appointment with us is free of charge. We are independent financial advisers and can provide you with impartial advice.
Please contact us at Logic Wealth Planning on 0808 1234 321.