PLANuary Tips
PLANuary Tip 1 - Set (and stick to) a budget
There are lots of different budget techniques but the 50-30-20 (or needs, wants, goals) rule works pretty well. The main aim is to spend:
50% of your income on needs like housing, food and bills.
30% on wants like eating out, shopping and entertainment.
20% on goals like building up savings, paying off debts or investing.
Those percentages might not work for you at the moment, so if you need to tweak then do it but keeping the principle of dividing spend into needs, wants and goals is a good place to start.
PLANuary Tip 2 - Set financial goals
There's so much hype at this time of year around setting goals for the year but they rarely include or focus on finances in a meaningful way. So this month, take some time to set a few financial goals and then write an action plan to get you there. Maybe you want to save more money, that's a great goal. But how do you get there? Setting a budget and understanding where you can cut down is a good place to start but you could also renegotiate your salary at work, sell some items you don't need any more, start a side hustle and so on.
Set yourself some goals and then create an action plan of how to get there. Chunking down the steps makes it seem much more manageable.
PLANuary Tip 3 - Understand Your Net Worth
Your net worth is the total sum of your assets minus the total sum of your debts. This is something really useful to keep an eye on and work towards improving as it gives you a fuller picture of where you are than your current bank balance.
PLANuary Tip 4 - Discuss Your Finances
Being open and transparent about your finances with someone you trust can help in so many ways. They might be able to help find a solution for some difficulties you're having. They could keep you honest and motivate you to save more instead of buying that thing you want but don't really need. They might also have a different perspective and be able to see things you can't like areas where you could reduce your spending. Talking more about difficult topics is never going to be a bad thing.
PLANuary Tip 5 - Check Your Credit Score
Getting familiar with your credit score and checking it regularly is vital as it can impact your ability to rent, buy a car, get a mortgage or even sign up for basic utilities. There are lots of different companies who can help you do this like Experian and Clear Score.
PLANuary Tip 6 - Get Your House Organised
If you're thinking of moving this year then this is essential but even if you aren't it's always good to get your house in order.
Now is a great time to start looking through what items you're not using, so you can sell them, give them to charity or throw them away. If you're moving this could save you money on moving costs.
It's also a good time to organise your paperwork. It's an easy one to let build up but having a system where you either file a document away, scan it for reference or shred it can help you keep on top of this every month. Plus it'll mean you don't need to take all of that into a new house too.
PLANuary Tip 7 - Think About Re-Mortgaging
If you're heading towards the end of your mortgage term then start thinking about re-mortgaging ASAP. It's a job that's better to do sooner rather than later. Get in touch with one of our advisers to see how they can help you with your re-mortgage.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. SOME BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT.
We hope those tips have been helpful and give you some good ideas of how to get control of your finances, so you can feel more secure in your future.
If you want to discuss your financial planning with one of our advisers just get in touch.