If you want to get your
finances into good shape, how about taking a few minutes to look at them?
Making sure you have ticked off all the boxes in this 10-step check-list will
help keep them looking good too.
1. Make a
Will
If you have any assets
at all and there is anybody in life you love more than the Inland Revenue, make
a Will. Even if you are young and single with no dependants, make a
will. If you do die unexpectedly, it can make life much easier for your
loved ones.
2. Life
Insurance
If you have anyone who
depends on you financially, then life insurance should probably be high on your
agenda. The bad news is that even young people can die unexpectedly.
The good news is that it is relatively unlikely so young people tend to get the
best life insurance deals.
Shop around to see what
is on offer.
3. Start
Saving into a Pension
It is never too soon to
start saving into a pension. Later, however, is still better than never.
Saving into a pension
has two big plus points. Firstly contributions attract tax relief.
Secondly, those in workplace pensions can get additional contributions from
their employer.
The fact that pensions
have these benefits means it may be worth contributing to them even if you are
still clearing debts.
4. Clear
high-interest debts
Mortgages, car loans and
student loans are designed to be paid off over the long term. These types
of loans tend to have relatively low interest rates.
Personal loans and
credit card or store card debt is an entirely different matter. This kind
of debt tends to be very expensive. Therefore it is generally best to pay
it off as quickly as possible. If your credit rating is good, you may be
able to get a 0% interest balance-transfer deal. This can help to freeze
the amount of the debt instead of having interest added every month.
Ideally you should pay off the debt before the deal comes to an end.
5. Look at
Moving Your Mortgage
A mortgage is a
significant expenditure. Make sure you are getting the best deal you
possibly can. If you are not, see if you can move to a new mortgage.
6. Learn
to Budget Properly
Look after your pennies
and your pounds will take care of themselves. Little purchases can slip
under your mental radar and have a significant impact on your finances.
You do not need to stop
making convenience or impulse purchases. You just need to know where your
money is going. Then if you are looking for savings ideas, you know where
to start trimming your expenses.
7.
Organise Savings Pots
Some bank accounts will
allow you to tag your money for designated purposes. This can be a great
way of keeping on top of your savings goals. For example you could have
dedicated pots for holidays or Christmas.
8.
Get an ISA
ISAs are essentially
tax-efficient accounts. They can be used for cash savings or for a wide
range of investments. In short, they help you to make more from your
money and give less to the tax man.
9. Take a
look at investments
Investments can help to
make your money grow over the long term. There are many different kinds
of investments available to suit all kinds of tastes. Take a look and see
what suits you.
10. Make
Time To Review Your Finances
As you go through life
your circumstances will change and your finances need to stay in sync with
those changes. Therefore make time at least once a year to ask yourself
“How to organise my finances?”. This will help to ensure that you make
any changes you need to.
For more information please do not hesitate to
contact the team at Ward Williams Financial Services Ltd on 01932 830664 or
by email on wwfs@wardwilliams.co.uk.
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