How is the year ahead looking?
As we welcome the New Year, what are the general thoughts about how the next 12 months will pan out, if we were to fast forward one year? Forecasts suggest that the UK is more or less out of murky waters and the next few years will see sustained financial health and a GDP of broadly 2.5%. How do UK business owners feel about the future? And how can you make your money work for you this year?
Business owners are still hesitant
Whilst its positive news for UK businesses that the UK economy is once again on a growth curve, in a recent poll by YouGov, only just over half of small business owners, 56%, are expecting business growth in 2016. Approximately one third of the poll recipients expect a maximum of 5% growth, and 23% expect less than 10%.
So it appears that small business owners, which would include most dental and medical practice owners, are approaching the new-year with an element of hesitancy, and certainly not taking anything for granted after the years of having an up-hill battle on their hands.
The key for 2016 will be to make your money work for you.
Be organised, forward thinking and digital this year
Business growth is likely to come to those who are organised, forward thinking and digital in their approach. It is impossible to path a strong road forward, without taking time to look back at the past months, assessing what has worked and what has not. Electronic software to record income and expenses is essential for up-to-date reporting and making those all-important business decisions that will encourage profit.
Be sensible with personal cost management
Sensible personal cost management will also be essential this year. In the UK, consumer spending is already beginning to spiral upwards, with a renewed access to credit, low inflation causing an income surplus, and a population who feel they have had their purse strings tied for a number of years.
Keeping a close eye on your costs will help to ensure your money is prioritised. It is likely that if you have lived without the brand new car for the last 5 years, a bit longer won’t hurt.
Make wise investment choices
Wise investment choices will also be vital if you are to build your wealth in the coming year. There are always new financial products entering the market, creating opportunities for all types of investor. However, with low interest rates and several crumbling global economies, the options are narrowing, in some cases.
Work with a financial adviser who will help assess your attitude to risk and research suitable investments to meet your budget and expectations.
Opportunities for the taking
With the opening-up of the pension model in 2015, many pensioners over age 55 are now having more choice than ever before. This creates a rustle of activity in the marketplace and encourages further pension and investment products geared towards this segment of the market. More of this is expected in 2016.
Whilst the new Stamp Duty Land Tax on second home will have been a disappointment to some who would have been planning in 2016 to use their pension to reinvest into property, there are other options available to the open-minded investor.
All in all, the financial landscape for 2016 is looking bright.
With investment opportunities available, a flow of money in the economy and a population who want to build their wealth – all that is needed is for it to be pulled together.
Before you go…
Don’t forget to download our latest Talking Money quarterly magazine, containing related article by Darren “How to invest your money in 2016” + more.
Dental & Medical Financial Services can help with forward planning for the financial future of you and your family. Call and speak to Darren.