As we face the year ahead with great anticipation, thoughts of resolutions, often centred around lifestyle improvements and healthy living, usually feature high on our to-do lists. It’s all too easy to overlook the resolution to take stock and refocus on your finances. A new year is the perfect opportunity to do this.
Whilst a financial overhaul may seem a duller prospect than taking on a new challenge or hobby, taking the time to do this now could really have a positive impact on your future wealth.
Reconnect with your goals
Whatever life stage you’ve reached, you’ll no doubt have some short and long-term financial goals you want to achieve, such as moving to a new home, saving for a child’s education, travelling the globe, providing financial support to family or retirement planning. Reviewing these goals and determining the amount of money required to fulfil them is a good discipline and helps you connect to your aspirations, standing you in better stead of ultimately achieving them.
Prioritising your pension
The earlier you start saving into your pension, the more you can contribute and the longer your money has time to grow. With tax relief available on contributions (within limits), pension saving is one of the best ways to ensure you stay on track for a comfortable retirement. No matter what age you are, your pension should be regarded as an essential part of your financial plan.
Tax-efficient saving opportunities
As the tax year end approaches, you still have time to use your annual ISA allowance, giving you even more opportunity to build up your savings tax-efficiently. Don’t forget about the Junior ISA too, for your children or grandchildren, which can form the basis of a great financial foundation for your loved ones.
Revisit your mortgage
If it’s been a while since you took out your existing mortgage, there could be a more suitable deal for you. Usually a family’s biggest monthly outgoing, considering your mortgage options is essential in being nimble with your hard-earned money. Being savvy here could potentially enable you to deflect money into your pension or savings.
Review protection policies
Life insurance and other types of protection, such as income protection or critical illness cover, should form a vital part of your financial plan. It’s worth reviewing these policies as your circumstances change, to ensure you have the right type and level of cover in place.
When it comes to reviewing and planning your finances, it’s important that you keep us in the picture if your circumstances alter. You may have moved home and have a larger mortgage, inherited a sum of money, changed jobs, divorced or extended your family. If you keep us in the loop, that will enable us to ensure that your plans are perfectly tailored to your circumstances and attitude to risk.
Make 2020 shape up to be the year you prioritise your finances, an invigorating prospect.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.