Financial Resolutions for 2020



We often view the New Year as a time for reflection, and as we enter a new decade and wave our goodbyes to the awkward teens, one thing you may have in mind is a financial review.

Photo by Danil Aksenov on Unsplash

To help get you started, we’ve put together our top tips for effective money resolutions to stay on top of your finances in the year ahead.

Prioritise your debt management

Paying off debt is the most effective way to boost your overall sense of wellness; not only will it improve your financial future, but it will make you feel happier day-to-day.

If you are struggling with debt, the Step Change Debt Charity has online resources to help control and reduce your debt, or you can speak to a financial adviser who will be able to review your situation and find out what options could be available to you.

Review your spending

Yes, we agree that an income vs expenditure review isn’t the MOST fun to be had but, it is January, so, let’s get to it.

The good thing is with open banking and current account providers offering an analysis of your spending, it is easier than ever to find out where you could be spending less. If you prefer pen and paper, print out your latest bank statements and have different highlighters for your spending, splitting it down into committed (rent, utilities, debt repayments), essential (broadband, food, travel), and fun items.

This is ideal for giving you an overview of which areas you are overspending on. Look out for things you could change here, for example switching your phone, broadband, and utility bills, or switching your daily food shopping to weekly.

Make automatic savings

With the New Year, it is tempting to set up unachievable goals, and that goes to saving too.

It’s important to set goals you’ll be able to keep, and as it’s never been easier to save little and often with automatic contributions, or tools to round up your spending into a savings account. Start by setting up regular affordable contributions that won’t affect your monthly spending too much, and gradually increase when it becomes a habit.

Set up a financial review

As we often review our goals and desires for the year ahead in January it’s an ideal period to set time aside to review your finances. Whether you do it yourself, or with a professional, a holistic overview will offer you insights into your financial health.

Whether you’re looking to start a family, purchase a home, retire, or take that trip of a lifetime setting up a 360-review of your goals will help you plan with confidence.

Up your pension contributions (even by a little)

While you may be tempted to spend today, rather than saving for tomorrow, your pension is a key tool for securing your future. In employment, automatically when you qualify for a workplace pension your employer will contribute at least 3% of your salary alongside a 4% contribution from you, and 1% top-up from the government making a saving of 8% per year. As we’re living for longer and therefore becoming more reliant on our personal pensions into retirement., it’s worth sticking to this guide, or increasing your payments.

For those who are self-employed, it’s wise to plan for a personal pension, setting up regular direct debit payments to make sure you are in the habit of contributions.

If you’re concerned about your pension fund or would like to speak to one of our advisers about creating a pension plan to suit your needs, contact us to book an introductory meeting at a time suitable for you.

Check your cover

Unfortunately, insurance is often the thing you don’t think about until after an event has happened. but this can cause major disruptions to you if you don’t have adequate insurance in place to protect you and your loved ones.

Set up a morning where you review your current plans and see what they offer should things go wrong. If you are keen to find out more or plan an insurance review, it can be helpful to speak to a professional who will be able to outline the specifics for you.

We offer free initial protection reviews with our qualified advisers throughout the country, get in touch to book. We also offer will writing services.

 

There you have it, your key financial resolutions for 2020. Requiring minimal effort, with potentially massive gain for your financial security and well-being.

Good luck!

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*Will writing is not part of the Quilter Financial Planning offering and is offered in our own right. Quilter Financial Planning accept no responsibility for this aspect of our business.