4. Set up regular deposits to invest
While an emergency fund is important, once you hit your target, you should consider investing. Over the long term, cash savings can lose value in real terms as the interest earned is likely to be lower than the rate of inflation. As a result, adding regular deposits to your investment portfolio for long-term goals could help your money to go further. Before you start investing, it’s important to consider what level of investment risk is appropriate for you.
5. Set out a plan to reduce debt
If you have any form of debt, such as credit cards or a mortgage, setting out a plan to reduce this could save you money. Simply switching providers to secure a lower interest rate can reduce your outgoings. Alternatively, if you can, making overpayments can pay off the debt quicker and reduce the cost of borrowing over the long term.
6. Review your will and Power of Attorney
Writing a will and naming a Power of Attorney are often tasks that people put off because they can be difficult to think about. Without a will, your final wishes may not be carried out, and a Power of Attorney can provide security if you’re unable to make decisions. If you don’t already have these in place, making these tasks your new year resolutions can provide long-term security. Even if you have already taken these steps, reviewing your paperwork is important as your wishes may have changed.
7. Set out your long-term goals
At the start of a new year, it’s common to think about what you want to achieve in the next 12 months. However, this year thinking further ahead can help you achieve more. What do you want your life to look like in 10 years?
If you’re ready to review your finance and take steps to improve your financial wellbeing this year, please contact us. We put your goals at the centre of your financial plan to help you set out a roadmap to achieve them.
Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
The value of your investments can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.