It is traditional at this time of year to make resolutions. Whether they are taking a walk every day, cutting out sugar or cutting down alcohol, it is just as traditional to break them again before the first week of the new year is out.
But there are some financial resolutions you should keep, and which could help you make 2021 a more prosperous new year.
Track Spending
Many of us wonder where the money goes each month. Now that cash is becoming a rarity, it is easier to find the answers. Your big regular bills, your mortgage, council tax, and your car payments were always easy to remember. Now you can see all the little things, the daily coffee, the bottle of wine on a Friday night, even the daily newspaper, listed on your online statement.
This makes it easy to see where the money is going – and a great deal easier to see where you could cut down.
Stick to Budget
Cutting down could be a first step towards a wealthier future.
In the pre-Covid days, we used cash. This helped to keep spending under control because you could watch it run out, which it always seemed to do very quickly. Using cards and phones to pay makes spending easy and makes having a budget and sticking to it all the more important. Shop around, take advantage of special offers, and cut out the things you pay for but never use – gym subscriptions are a waste if lockdown means you can never actually go.
You can also register for Continuum Perks programme, an exclusive offering for our clients, allowing you to save at some of the leading high street brands.
Book a free consultation
If you want to find out more about our exclusive offering, contact us today.
Aim to have a little cash left over at the end of each month.
Deal with debt
Debt is easy to get into, but hard to get out of, because it means spending money on interest which could be working for you. You can use your new-found surplus monthly cash to pay them off.
Credit cards are probably the place to start, because interest rates can be high – but this time of year, 0% balance transfer offers may be available. Transfer your balance and try to pay it off before the offer runs out. If you still find yourself reaching for a credit card, you might want to cut them up, and use a debit card instead.
Once you are out of debt, with no repayments to make, your cash reserves could really start to mount up – but you need to find a way to use them.
Build up wealth
The traditional home for spare cash was the savings account, which is safe and secure. The Financial Services Compensation Scheme will protect the first £85,000 held with any one bank or building society if it goes bust.
However, although savings accounts are secure, and offer easy access to your cash, interest rates are now so low, savings accounts are hard pressed to keep up with inflation. You can find the best home for your cash by using our online calculator.
For some people, investing could be an alternative better solution. A Stocks and Shares ISA could help you harness a stock market recovery in 2021 and protect the money you make from the taxman. At Continuum we can help you find an investment strategy that lets you invest on a regular monthly basis, making investing as easy as saving, and potentially much more rewarding.
Call us
If you are looking at investing, you have many options to consider, including ISAs and pensions. To find out what might be right for your needs, call us at Continuum.
Resolve to call Continuum
2021 could present some exciting opportunities as the world starts to recover from Covid. Those opportunities could be a great deal easier to take advantage of if you have some professional help.
So, for the help you need, make your final resolution to call us at Continuum, and in the meantime, let us wish you a prosperous New Year.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable investment strategy, you should seek independent financial advice before embarking on any course of action.
The value of investments can fall as well as rise and you may get back less than you invested.
Equity investments do not afford the same capital security as deposit accounts.
A pension is a long term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Pension income could also be affected by interest rates at the time benefits are taken.
