Are you on track to achieve your financial goals? We’re sharing 5 smart financial moves that could help you start 2020 on the right foot.
As we enter a new decade, putting your finances in order has never been more relevant. This can be a daunting task and many of us often end up burying our heads in the sand. But don’t worry, we have 5 steps to help keep yourself on target and achieve your financial goals.
Step One – Have A Strategy
This first step covers both our short and long-term goals. You have probably heard it all before, but it’s hard to be effective unless you have a clear plan for what you want to achieve. This could be a long-term plan that allows you to retire early, or a short-term goal such as freeing up some cash to renovate the kitchen. Once you have decided on your goal, start by working through what’s required to help make them happen.
At Beaumont Wealth, we have these kinds of conversations with clients every day. Many find themselves surprised by the reality of their financial situation and how their wealth could be working much harder for them. Putting together short and long-term strategies is key.
Step Two – Monitor
In order to allow the strategy from step one to be truly effective, you need to monitor your finance on a regular basis. It might be that you could be able to put more money away than first anticipated, or that changes to lifestyle have given you surplus cash which could be reinvested. Correct monitoring and understanding of financial figures is key to making long-term strategies effective.
Setting up a yearly meeting with our team can help monitor your plan, making adjustments to your strategy as your circumstances change.
Step Three – Check Your Allowances
Taxes are certain, but as the rules constantly change, it’s important to review and understand how these changes affect your family and long-term plans. Utilising your tax allowances and reliefs is an effective way of reducing your tax liability, helping you to make considerable savings throughout your lifetime.
The UK tax system is complex, and its legislation often changes. It’s important that we understand this system and how to make the most of it, which is why we help many of our clients make sure they don’t pay more than they have to.
Step Four – Keep an Eye on the Climate
It’s important to be aware of external factors which may affect your finance. Inflation is particularly problematic. If the rate of inflation is higher than your rate of interest, then your savings will steadily lose value over time. An easy guide to follow is the Rule of 72 —simply divide 72 by the given interest rate, or the inflation rate, to find the number of years in which you would double or halve your money.
This rule is only an estimate, but can help you to see if it would be best to seek financial advice. Our experts can accurately assess the current climate and the impact this will have on your finances, and then help devise a new strategy to navigate these external influences.
Step Five – Spend Smart
Sometimes just understanding how much money is being spent on coffee each week can be an eye-opener that helps change your spending habits. Regarding long-term strategies, the smallest adjustments can make the biggest impact when multiplied over time. What seems to be surplus cash could actually be working so much harder for you in the long-term.
Our advisers can help you work through your finances and come up with small changes that will have a positive impact on your financial goals. As experts, we know all the tricks there are to making your money work harder without having a negative impact on your lifestyle.
Speak to one of our independent financial advisers today for no-obligation advice on 01691 670524 or email us at [email protected]