With the busy schedules doctors and dentists keep, it can be difficult to find time to manage your finances. But ensuring you are on track with your financial plan, including your taxes, is important. If you set aside time each month to take care of one key element of your financial plan, by the end of the year you’ll be in a great place. Let’s take a look at steps you can take each month to help you reach financial stability.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. The Financial Conduct Authority does not regulate tax advice.
Month-by-month financial assignments
April: Kick off the tax year on the right foot. Take this time to simplify your finances and get in control for the 2024-25 tax year. If you want a more structured approach to planning, consider setting up separate accounts for income, living expenses, tax obligations, and savings goals. Some people find this method of managing finances provides clarity and financial discipline.
May: While interest rates are still high, take advantage by reassessing your savings accounts. Explore alternative options to see if you can find an offer that provides better returns on your savings to maximise your earning potential.
June: Start the summer by developing or revisiting your investment strategy to ensure it is tailored to your financial goals and risk tolerance. Evaluate how much you’re investing, your attitude toward risk, and diversification strategy to make informed decisions about growing your wealth.
July: Try treating your personal finances like a business. Build a personal balance sheet to help analyse your net worth. This can help you track your assets, liabilities, and overall financial position, making it easier to monitor your progress.
August: Before the summer is out, review your mortgage terms and interest rates. With mortgage rates on the rise, you’ll want to ensure you’re getting the best deal. If you’re nearing the end of your mortgage term, consider refinancing options to save on interest.
September: Review your insurance policies to ensure you are adequately covered. Go over the terms of your wealth protection policies so you and your family are protected against unforeseen events that cost you your ability to work.
October: Even though it will be a spooky season, don’t be scared about working with a financial adviser. A trusted financial adviser can help you navigate complex financial matters and provide valuable insights and guidance to help you achieve your long-term goals.
November: Take a minute in the autumn to sit down and organise your estate. Draw up a Will to protect your assets for your loved ones and ensure that your estate plan accurately reflects your wishes. Consider seeking legal advice to ensure your Will’s validity.
December: The end of the calendar year is a great time to reflect on your financial journey throughout the year and create a new list of goals and objectives for the upcoming year. Take stock of your accomplishments and set actionable tasks to continue building financial security.
January: Get ahead of tax season and request your NHS Total Rewards Statement at the beginning of the year. For doctors and dentists in the NHS pension scheme, understanding your retirement benefits is crucial. Reach out to your financial adviser to discuss NHS pensions and gain insights into your pension contributions and projected benefits.
February: After the buzz of the holiday season has settled, take some time to conduct a thorough review of your direct debits. With the cost of living crisis, identifying unnecessary expenses is an easy way to save.
March: As the tax year-end approaches, ensure that you’ve maximised your tax reliefs by utilising your allowances in full, such as ISAs, pensions, and capital gains tax allowances. Explore ways to minimise your tax liabilities and optimise your financial position.
Work with a professional any time of the year
At Dental & Medical Financial Services, we understand the unique financial challenges facing doctors and dentists. Our team of experts is dedicated to providing tailored financial planning and tax-efficient solutions to help you achieve your financial objectives.
Start the new tax year with confidence. Contact us today to take the next steps towards financial peace of mind in the next tax year.