Your Financial New Year’s Resolutions
Most of us will make at least one New Year’s resolution – but research suggests that just 1 in 10 of us will go on to achieve it.
Psychologists have found we’re more likely to succeed if we break our resolution into smaller, specific goals.
So, if one of your resolutions for 2016 is to get on top of your finances, we’ve broken this down into five easy (and, hopefully, more manageable) steps for you. You might want to choose the one that you think will make the biggest difference, or take on all of them over the course of the year. Either way, we hope they’ll help you on your way to a more prosperous financial future.
1. Make a budget
Keeping track of your income and expenses will give you an objective view of your finances. It can also highlight areas where you can trim your expenses or make the most of your income. You can break this down even further into specific tasks, like writing a groceries list before you go shopping, or setting a weekly budget for luxuries.
2. Use your ISA allowance
The allowance for 2015/16 is £15,240. You have until 5 April 2016 to take advantage of the current allowance as you cannot carry any unused ISA allowance over to the following tax year. Over the longer term, the effect of compound interest can make a big difference to your overall savings, so it makes sense to save as much as you can.
3. Top up your pension pot
Pension savers are able to top up their pension pot by an extra £40,000 before 5 April 2016. This one-off benefit is due to a change in rules which means the Pension Input Period will now be aligned to the tax year.
4. Update your protection
Whether it’s updating your home insurance policy to cover any new Christmas purchases, or making sure your Income Protection policy covers any recent change in salary, the New Year is a good time to review your insurance needs. That way, if you need to make a claim, you know you’ll be properly covered.
5. Seek advice
Discussing your financial needs with an expert can make managing your nances simpler. We can help you establish a financial plan that’s designed around your specific needs, make sure it stays on track, and provide ongoing advice that will help you achieve your goals.
Content reproduced by permission of Openwork Ltd.
