January is financial wellness month!
December is often recognised as one of the most expensive times of the year. With costs for Christmas gatherings, food, gifts, and decorations, it's easy to spend over your budget. Needless to say, this may have repercussions in January.
If your New Year's resolutions include managing your finances better and establishing a financially sound 2024, continue reading for our top tips to promote financial well-being this month and in the future.
2023 undoubtedly wreaked havoc with many of our finances with the cost-of-living expenses rising and interest rates causing uncertainty in the mortgage market. So, with a New Year now underway, it isn’t too late to set our New Years’ resolutions for your finances to help combat the ongoing cost increases. Check out our handy list of 10 Financial New Year’s Resolutions that could help shape your finances for 2024.
- Create an emergency fund:
It may seem difficult to envisage pots of cash stashed away while many of us our tightening our belts, but if it’s possible to squirrel away even small amounts to fall back on should you need it, this could provide comfort if tough times come calling.
- Reassess your utility providers
While reassessing gas and electric providers may be a little out of reach while the prices continue to climb, other outgoings can be reassessed. From your TV packages to your broadband deal and even your mobile phone contract, when the current agreement ends, it’s worthwhile looking around at what other options are available. Sadly, loyalty is not often rewarded and new customers may see better introductory deals, meaning looking at alternate providers could save you a fair amount of money.
- Plan for Retirement
If you are only in your 20s or 30s, or even into latter decades, retirement may feel an age away, but preparing your finances to accommodate a lapse in the income your used to when the time comes is essential. Sitting down and assessing your pension(s) and even looking to consolidate multiple pensions into one spot can help put your retirement finances in line ready for the years ahead.
- Clear those debts
Many of us inevitably face debts following Christmas spending, from credit cards to loans and even store cards, it’s easy to accumulate debts through the seasonal overspend period. Look to overpay on your minimum repayments where possible to help clear the debts that bit quicker. Or even look at Debt consolidation options where you could secure an alternative loan to pay off the existing debts, creating 1 simple repayment monthly, rather than several spread out debts. This may mean that you are paying off a higher amount over time.
- Plan for the expected, allow for the unexpected
Making compensations for the price rises is something we can plan in to our budgets for the year ahead, but it’s important to ensure we expect the unexpected. What if rates rise? What if you lose your job? The unknowns could have significant impacts on our finances so it pays to be prepared. Have you considered income protection? Or repotting money into higher interest rate accounts? There are many ways to prepare should the worst happen- do get in touch to discuss further options.
- Prepare a will
As with planning for retirement, planning a Will can seem unnecessary and a little uncomfortable, but if you have assets or loved ones to provide for after you’re gone, a Will is an essential part of forward planning. It is widely considered that many Wills are not fit for purpose, if they’re in place at all, so it is worth revisiting yours even if you have one in place, to ensure it is still fit for what you’d like it to do. *
- Get your property valued
The last few years have seen house prices increase considerably, and although the rise is slowing, it could be worth taking a look at the current value of your home. Whether you own your home with a mortgage or outright, it’ll stand you in good stead for your new-year goals to know how much equity you have in your property.
Knowledge is power and knowing exactly how much equity you’re sitting on can only help inform your personal finance decisions in 2024.
- Improve your Credit Score
When it comes to any significant financial considerations, your credit score is likely to feature in whether you’re able to go ahead or not, so it pays to have it up to scratch. Lenders will use your Credit Score as a report on what your typical financial behaviours are and how they expect you’ll behave with your finances in the future. In simple terms this means your past could shape your future financially. So keep your financial behaviours in order to allow yourself future options for the year ahead.
- Is this the year to invest?
Developing a portfolio of investments could be on your 2024 to-do list. Looking into property or stocks and shares could be where you choose to invest money you may have, but it could be important to secure advice on investing if that’s something your new to. If you’re a seasoned pro, consider what is likely to perform well among periods of uncertainty as we see costs growing.
- Refine your spending habits
When buying anything, the first thing you should be asking yourself is whether or not you actually need what you’re about to buy. If the answer is no, then put it down and walk away. This can be tricky, but once you get used to it, you’ll find your spending habits starting to change naturally.
Take a look at all your current subscriptions and cancel any that you don’t use or need. You can also unsubscribe from marketing emails to remove the temptation of browsing new offers, and leave credit and debit cards at home if you don’t need to shop while out.
It isn’t too late to set our New Years’ resolutions for your finances
Risk warning: If we think you are eligible, we will introduce you to a nominated secured loan specialist company. Fees may be payable but these will be discussed during the advice process. Securing debt on your property, may mean that you are paying off a higher amount over time and the duration of the debt may be extended.
*Wills and Estate Planning are not regulated by the Financial Conduct Authority
If getting on top of your finances is one of your New Year’s resolutions for 2024, don’t overlook your mortgage arrangements.
For most of us, our home loan represents one of the most significant financial commitments of our lifetimes, yet too few people review their mortgage regularly. If that’s you, don’t delay any longer – an overhaul of your mortgage could unlock significant savings, enable property improvements as your life changes, or give you an opportunity to move home.
If your current mortgage deal is looking to end in the next 12 months, you have options you can explore now:
- If you’re on a fixed rate
- This won’t effect your monthly payments right now as your rate is fixed and therefore your payments are fixed.
- If your mortgage is due to end in the next 6 months
- Give us a call to look at securing a deal ahead of your deal coming to an end. Some lenders can lock in deals up to 6 months in advance so it might be worth the discussion now, as rates could go even higher.
- On a variable or tracker rate?
- Contact us so we can discuss if you ditch, switch and save - and act quickly, as current rates could increase. This is especially likely for those on standard variable rate (SVR) mortgages.
- Unsure of your options?
- As a mortgage holder, it can be confusing and unclear what the changes mean to you, but if you’re unsure we’d encourage you to pick up the phone and get in touch with us to discuss your current situation so we can advise on the most suitable options.
- If you’re struggling to pay
- Avoid missing repayments without first speaking to your lender- they may be able to help.
- With the cost of living increasing, many homeowners are struggling to meet their mortgage repayments. Missing a mortgage payment is known as falling into 'arrears'. You want to try to avoid this as best you can, as it'll have a serious impact on your ability to get credit in future. So, speak to us, or your lender as soon as you can to discuss your options.
Speak to our team of experienced advisers who are available to provide personalised guidance tailored to your specific needs and circumstances
Risk warning: Think carefully about securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. You may be charged a fee for mortgage advice.
January is a month of possibilities, and one of the best gifts you can give yourself and your loved ones is the security of life insurance. Here's why January is the perfect time to make this important decision.
1. Age is on your side:
The clock is ticking, and you'll never be younger than you are right now. One of the key factors influencing life insurance premiums is age. The younger you are, the more affordable your policy is likely to be. Locking in coverage in your twenties or thirties can result in significantly lower premiums compared to waiting until later in life. By taking action in January, you're making a financially savvy move that ensures you get the most value out of your life insurance investment.
2. Time is of the essence:
In the midst of the winter cold and early darkness, January often provides a slower pace of life. With the hustle and bustle behind you, this is an ideal time to focus on your priorities. What better use of your time than taking steps to safeguard the financial future of your loved ones? By addressing important matters like life insurance now, you are setting the stage for a more secure and worry-free year ahead.
3. A fresh start for a brighter future:
The beginning of the year is symbolic of new beginnings and fresh starts. As 2024 unfolds, there's a chance it could be your best year yet. Starting the year on the right foot involves tackling tasks that have been lingering on your to-do list for too long. Securing life insurance is a proactive step towards creating a foundation of financial stability and protection for your family. Don't let procrastination stand in the way of your peace of mind.
4. A lasting gift to yourself:
While the festivities may be over, there's still room for one last gift — the gift of security. Investing in life insurance is a powerful way to ensure your legacy and provide for your loved ones, even when you're not there. Consider it a thoughtful and lasting present to yourself, one that brings peace of mind and demonstrates your commitment to the well-being of those you care about.
Now could be the ideal time to secure your future with life insurance
As the temperatures start to go down and the energy bills go up, you might feel like you can’t afford to put the heating on.
If that’s you, there is support available for people claiming benefits or who have reached a certain age. Don’t miss out on the support that’s there for you. Read on for the different ways you can get support from the government to heat your home this winter.
The different types of government support available this winter
There are three schemes available to help you keep the heating on this winter:
- Winter Fuel Payment
- Warn Home Discount Scheme
- Cold Weather Payment
There's also a fourth scheme, the Affordable Warm Scheme, which is exclusive to Northern Ireland and designed to help you prepare your home for cold weather.
If you’ve explored all of these options, you don’t want to take on extra monthly commitments or deplete your savings, and you’re a homeowner over the age of 55, you might want to explore equity release as a means of accessing funds to heat your home, or to make your home more energy efficient in the long run.
Curious to see if equity release could be an option for you?
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.
As we bid farewell to the old year and usher in a new one, many of us embark on a journey to prioritise our health and fitness. New Year's resolutions often involve promises to hit the gym, eat better, and lead a healthier lifestyle. While enthusiasm is high in January, maintaining that momentum throughout the year can be challenging. To help you stay on track, here are some top tips on how to stick to your health and fitness resolutions in the coming year:
1. Set realistic and attainable goals
Start by setting achievable goals. Aim for small, incremental changes rather than drastic, unsustainable shifts. Realistic goals not only boost your confidence but also make it easier to incorporate healthier habits into your daily routine.
2. Create a concrete plan
Outline a clear plan of action. Schedule your workouts, plan your meals, and create a structured routine. Having a well-defined plan makes it easier to stay committed and helps you navigate potential obstacles.
3. Find an exercise you enjoy
Make fitness enjoyable by choosing activities you love. Whether it's dancing, hiking, or cycling, finding an exercise routine that brings you joy increases the likelihood of sticking with it. If you enjoy what you're doing, it won't feel like a chore.
4. Mix it up
Variety is the spice of life, and the same applies to your workout routine. Prevent boredom and plateaus by incorporating a mix of exercises. Try different classes, sports, or workout styles to keep things interesting and challenging.
5. Enlist a workout buddy
Having a workout buddy can be a game-changer. Whether it's a friend, family member, or colleague, having someone to share the journey with provides motivation, accountability, and makes exercising more enjoyable.
6. Prioritise recovery and rest
Rest is a crucial component of any fitness journey. Allow your body time to recover by incorporating rest days into your routine. This not only prevents burnout but also supports muscle recovery and overall well-being.
7. Focus on nutrition, not deprivation
Instead of depriving yourself of your favourite foods, focus on making healthier choices. Incorporate more fruits, vegetables, lean proteins, and whole grains into your diet. Remember, it's about progress, not perfection.
8. Track your progress
Documenting your journey can be incredibly motivating. Keep a journal, take photos, or use fitness apps to track your progress. Celebrate small victories, and use setbacks as learning opportunities rather than reasons to give up.
9. Stay positive and be patient
Change takes time, and setbacks are a natural part of any journey. Stay positive, be patient with yourself, and recognize that progress is often gradual. Celebrate the effort you put in and the positive changes you experience along the way.
10. Reward yourself
Set up a reward system for reaching milestones. Treat yourself to a massage, a new workout outfit, or a healthy indulgence when you achieve your goals. Rewards can provide additional motivation to stay on track.
If motivation alone is not enough to keep you on track, how about the added incentive of saving some pennies? Should you quit smoking and have a term assurance plan, staying smoke free could see your life insurance premiums drop significantly.
If you are a fitness junky and have a personal health insurance plan, by declaring your healthy lifestyle to the insurers you could save on your premiums there to.
We can support you with your long term health goals
Whether you're a homeowner or renting, if someone in your household has received a high-value gift for Christmas, don't forget to ensure your belongings are covered with your home insurance policy.
Here's a brief guide to help you navigate the ins and outs of safeguarding your high-value items:
1. Review your home insurance policy
Start by reviewing your home insurance policy. Take note of the coverage limits for personal property and any special items like jewellery, electronics, or collectibles. High-value gifts may exceed these limits, so it's essential to assess whether you need additional coverage.
2. Schedule valuables individually
If your policy limits are not sufficient to cover your high-value items, consider scheduling them individually. This involves creating an itemised list of specific valuables along with their appraised values. Scheduling items provides a more comprehensive and tailored coverage for your most prized possessions.
3. Understand coverage types
Home insurance typically covers a range of perils, including theft, fire, and certain types of damage. However, policies may differ in their coverage. Make sure you understand what perils your policy protects against and if any additional endorsements or riders are needed for specific risks, such as earthquakes or floods.
4. Keep records and receipts
Maintain a detailed inventory of your possessions, especially high-value gifts. This includes serial numbers, purchase receipts, and appraisals. Having a well-documented record can expedite the claims process in case of loss or damage.
5. Notify your insurance provider
If you've received a high-value gift, notify your insurance provider promptly. They can guide you on the necessary steps to update your policy or add extra coverage. Failure to inform your insurer about changes in your valuable possessions may result in inadequate coverage when you need it most.
6. Regularly update your coverage
Life changes, and so do our belongings. Periodically review and update your home insurance coverage to ensure it reflects the current value of your possessions. This is particularly important after significant life events like weddings, home renovations, or, of course, receiving valuable gifts.
We’re ready to discuss your home insurance needs
* https://www.fca.org.uk/publication/financial-lives/financial-lives-survey-2022-key-findings.pdf
** 75% increase in purchase scams involving Facebook Marketplace from January to September 2023, compared to the same period last year. Sourced from Lloyds Banking Group fraud insights data, correct as of September 2023.
