Five financial resolutions to take action in 2016
- Every penny counts: Whether you are looking to make a donation to a charity by rounding up your payment in a shop, or setting aside change from a purchase, the benefit of small change can’t be underestimated. Over the year, it could accumulate a decent sum, and for a charity, millions of micro-donations will make a difference.
- Knowledge is power: Before making any financial plan, try and work with your financial adviser to understand the extent of your assets, and any outstanding debts and investments you have. Before setting a financial target, understanding your true starting point is crucial.
- Spring clean your accounts: After an unseasonably warm winter, it is hard not to think about spring. But alongside cleaning the house, a financial spring clean should be in the frame. Examine your savings accounts – are you on the best rate in the market? Do you have unused current accounts you can close? When was the last time you reviewed your utilities provider and your current deal to see if you can save?
- Prepare for a rainy day: It’s not uncommon for people to set aside savings for a rainy day, but there are other steps to consider. Home and contents insurance will be second nature for many, but life insurance and critical illness cover can prove to be an invaluable safe guard in the case of unexpected health issues.
- Saving could be for Christmas: Many of us are feeling the financial pinch after the excesses of Christmas, but debt can be costly if not repaid quickly. Planning next Christmas is the last thing in most people’s minds, but simply setting aside £100 a month in an ISA from January (alongside your long-term savings), could mean approaching next year’s festive period on the front foot rather than facing a hefty credit card bill in 2017.
Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.
This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.