So you may be thinking where did 2011 go. It’s Olympic year and the Queen will be celebrating another milestone of 50 years on the throne. It’s also been an eventful period for economics and politics and it’s fair to say no one would be brave enough to predict what 2012 holds for us all.
In July the London 2012 Olympic Games will have been seven years in the making. It is set to be an event that will make UK history.
In every phase of life, planning well ahead for an event is invaluable. A well thought out plan can help to make sure things turn out how you would like them to.
With a new year there isn’t a better time to make or review your financial plans and with that in mind here are our top 10 financial tips for 2012:
1. Keep track of your regular spending. Try and keep a budget each month. Don’t forget to add a section for savings!
2. Utilise your ISA allowances. You can invest in cash and/or stocks and shares with an ISA. The tax year doesn’t finish until April 5, so you still have time you use your ISA allowance. Your ISA allowance for the 2011/12 tax year is £10,680.
3. Keep money aside for emergencies. For example: an amount equivalent to three to six months salary will act as a buffer and take away the financial stress an emergency can bring to any household.
4. Get Protected. Many of us have insurance for our homes and contents, so why not make provision for Life Insurance, Serious Illness Cover and Income Protection and have peace of mind for the family?
5. Make a Will.
This is something not all of us want to think about, but it should be a vital piece of your financial plan.
6. Start a Pension as soon as you can. Tax relief is available at the highest rate on contributions providing you are UK-based.
7. Try to reduce debt (To do this, why not set up a standing order to reduce any credit card bills? Not only will you be meeting your monthly payments and any interest payments, you will be paying back the amount owed direct).
8. Be aware of the effect inflation can have on all your financial plans.
9. If you have children, start a Junior ISA. (If a child doesn’t have a child trust fund, £3,600 can be invested in each tax year for when the child reaches age 18).
10. When making financial decisons it's always a good idea to check with your adviser - if you have one! If not give us a call and together we can work out what's best for you.