January is usually the time when people stop and take a good, hard look at their finances so they can reset and begin a new year with a fresh start. However, the new tax year is just as good a time to start with a clean slate. Here are four things you should definitely be doing in order to save money and tax throughout the year.
This does not constitute advice and advice should be sought in all instances before acting on it.
1. Utilise your allowance
You may have spent the first few months of the year ensuring you’ve maximised your savings by contributing to your tax-free ISAs and thinking about this year’s is the last thing you want to do. But it’s important to plan accurately so you can leisurely save throughout the year instead of scrambling to top up your savings at year end.
The best way to do this is to set up an automatic deduction so you don’t even have to think about it. Don’t forget to adjust your contributions for pay rises, and of course it doesn’t hurt to take a portion of any one-off bonus that happens to come your way.
2. Hit the reset button
Take a deep dive into all of your accounts to ensure you’re aware of any fees you’re paying, or if any rates have changed since the last time you checked. Often end of terms sneak up on you, and if you have reached the end of an introductory credit card period, a new, higher APR kicks in.
You might find that you can afford to pay more into your mortgage so you can start making overpayments (if allowed). Alternatively, if you’re nearing the end of your initial mortgage period, it might be time to shop around for a better deal. Now is the perfect time to remortgage as the rates are highly competitive and with Brexit just around the corner, the future is wildly unpredictable.
3. Safeguard your future
We’re not just talking about saving for retirement (but that is absolutely something you should be doing). If you’re the sole earner or the higher earning spouse in your relationship and you don’t have any kind of protection should something happen, you could find yourself in a difficult position.
Of course, no one relishes paying out extra, but you’ll be glad you’ve got cover should you find yourself ill or injured. Apart from life cover, critical illness protection and income protection are two ways to ensure your family can continue living comfortably if you find yourself unable to work.
4. Review your portfolio regularly
At the start of your career, you can afford to be a little risker in your investments. But as you mature in your professional and personal life, you should routinely check on your portfolio and adjust accordingly.
Especially given the current economic climate, you’ll need to constantly evaluate your attitude to risk. Check in with your financial advisor to see if there’s anything you could be doing to bolster or protect your investments.
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While your aim should be to save money wherever possible, it shouldn’t be a constant burden hanging over your head. Set up a solid plan and check it regularly so you don’t need to feel bad about occasional splurges or treating yourself once in a while.
If you need guidance or direction, don’t hesitate to contact a member of our team for help.
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Dental & Medical Financial Services have been helping doctors and dentists to build and protect their wealth, whilst saving tax for over 25 years.