How to sort out your finances in the New Year
It is around this time people want to make resolutions. Inevitably due to the excesses of Christmas part of this is often resolving to spend less money and generally keep on top of finances. Here are a few tips to help you get back on track in 2016.
Avoid unnecessary spending
It is amazing how hidden costs can add up. For example instead of going to a café for a coffee in the morning you can get up a bit earlier and get your own coffee. Instead of buying expensive sandwiches for lunch or buying meals from the canteen you can save by bringing some in (plus there is the added advantage of knowing what’s in them).
However like a diet be sure to give yourself a little breathing space for indulgence (although check online and look for coupons as you may be able to get money off on those treats while you’re there).
It is easy to lose track of debts- however you should prioritise the debts that accrue the most interest, such as credit cards. Remember there is help available for this.
Is your bank account best suited to your needs? Have you looked at the interest on other credit cards? This may sound obvious but people do have a tendency to stick with companies once they have started using them. Sometimes even suggesting to a company you are considering switching can help you get a better deal!
Avoid brand snobbery
Recent reports from the supermarkets suggest more people are switching to discount stores. Ultimately this is an easy and relatively pain free way to reduce costs- often in taste tests the unbranded products are highly rated so don’t be afraid to “trade down”.
There may be things that you want to get. You may want a new computer or go on holiday. The best thing to do for this is to get an idea of what things cost and put money aside for it.
Take advantage of tax breaks
ISAs, putting money in the name of a partner who pays less tax and venture capital investments are all ways you can save money by paying less tax. It is best to look at ISAs and other methods but if you want to know about other methods of investment that can reduce tax it is best to speak to an adviser who will give you an idea of what is involved and whether it is appropriate for your needs.
If you set a target you should be aware of how well you are doing- regularly reviewing how much you have set aside and what you are spending will reduce the chances of impulse spending.
There are a lot of ways to save money and improve your finances in the New Year. We believe our financial services can help you get more from your money and guide you on ways to invest. Contact us today on 023 9244 8100 and we will be happy to offer more information.