GUEST COLUMN: Make a plan to be cash savvy this year and save the pennies

UK Pound Sterling Cash in my hand...ADXTFE UK Pound Sterling Cash in my hand
UK Pound Sterling Cash in my hand...ADXTFE UK Pound Sterling Cash in my hand

Now that Christmas is fading into a dim and distant memory and we are in a new year it might be time to do a bit of planning and have a sort out of your finances.

Most of us tend to muddle along with money, perhaps putting a little bit aside when we can.

But are you putting it in the best place?

Have you thought about what you are saving for? Or when you might need it?

Planning is at the heart of every financial decision – or it should be!

It is easy to just put the extra money at the end of the month in to a deposit account and when you hit a financial crisis to cash in savings without checking what the deal is.

Step back a bit and think: when am I likely to need my savings? Am I saving for the long term, for the kids going to university or for the holiday of a lifetime when I retire? Or is it a pot I might dip in to if the car needs fixing or the roof starts leaking? It’s always a good idea to have a fund you can get at easily in an emergency like that.

Are you getting a good rate of interest? If you put your spare money in to a cash ISA rather than an ordinary deposit account you are likely to get a better rate, as you don’t have to pay tax on the interest. But also look at how easy it is to get at that cash and whether there are any penalties if you take it out in an emergency.

And for bigger investments, think about how much of a risk you want to take. If the money is vital and you can’t afford to lose it, maybe it’s towards living costs when you retire, be mindful of how much risk you want to take with the investment.

And if you got into a bit of debt because of Christmas, how about thinking ahead to Christmas 2016? Christmas cards and wrapping paper will be cheap right now. And while you’re out shopping in Chesterfield, there’s no reason why you can’t pick up a few items in the sales as gifts for next Christmas. I know I’ll be out looking for a bargain!

The information contained in this article is provided in good faith. Whilst every care has been taken in the preparation of the information, no responsibility is accepted for any errors which, despite our precautions, it may contain.

No individual investment advice is given, nor intended to be given, in this article and no liability will be accepted in respect of any action you make take as a result of reading this article. If you are unsure whether any particular investment or any specific course of action may be suitable for you, you are urged to take independent investment advice.Future Life Wealth Management Limited is Authorised and Regulated by The Financial Conduct Authority.