After the small delights of Christmas 2020 and the New Year, this January feels both long and hard. Even worse is the realisation that the credit cards bills are still due at the end of the month and there are still so many weeks to payday!
Any time is a good time to review your finances, but January appears most apt as any underlying stresses may be more apparent. Ask yourself are you living within your means and is your lifestyle sustainable? If the seasonal excesses have not been the final straw for the overdraft and the credit card limits, you may want to start developing some plans for next month, saving for holidays and retirement.
For next month, remember Valentine’s Day; put aside some money for a gift or less likely, a meal out; as now is the peak holiday booking season, notwithstanding Covid-19, think about where to go and how much to spend. For the longer term, how is your retirement plan working out?
With the rise of workplace pensions, being in work means you should be contributing something towards a pension. For some, the premiums will be a strain for the family finances, but wherever possible, start to save for your retirement as early as possible; opting out just prolongs the misery and makes it harder to save sufficient for a comfortable retirement. If you think just the minimums into your workplace pension will be sufficient in the long run, you will be sadly let down, but it is a start.
If your finances are in a poor way, now is an excellent time to get help and sort it out before you get in deeper. Take a good look at your personal income and expenditure and be honest with yourself – can you spend less and pay off debts faster? Some charity fund raising like the Dryathlon, for Cancer Research UK, may be a good way to save some money, have fun and raise something for charity. Self-help, like www.moneysavingexpert.com money saving forums can be empowering as well as money saving.
As a general rule, do not spend money to get out of debt; there are plenty of predators quite willing to take money off you as fees to do things you could do yourself or otherwise improve their lifestyle by reducing yours. For a start, have a look at www.stepchange.org or www.payplan.com or visit www.moneyadviceservice.org.uk.
For those of us who are not overreaching ask yourself the long term strategic questions, how realistic is your long-term financial plan, when was the last time you reviewed it? This short check list covers some basic points;
Do you have some emergency money put away for problems like the car needing repairs or the washing machine breaking?
Are you saving something regularly for holidays or home improvements?
Does your employer have a pension scheme and are you in it?
Do you know how much you are likely to have to spend in retirement?
How will your family cope financially if you were taken seriously ill or died?
Will all your long-term debts be paid off before you retire?
Do you have a will and is it up to date?
To do all of the above with as little fuss as possible, contact the office and ask to speak to a financial adviser on 01223 792196.
Happy New Year!
Arrange a meeting to find out how independent financial advice can help you. Please get in touch with us to arrange an introductory meeting, at our cost. At Martin-Redman Partners we have both male and female advisers who can help you make the most of your money – either by managing your pensions and investments, arranging life cover, and assisting with your financial plan.
To find out more about how we can help, or if you have any questions about your investments please get in touch by calling us on 01223 792196 or emailing info@martin-redmanpartners.co.uk We look forward to hearing from you.
About Martin-Redman Partners
We are a team of experienced Independent Financial Advisers (IFAs) who can advise on your personal or business financial arrangements. We have been building trusted relationships with clients for many years by articulating clear and tailored recommendations in areas ranging from investments to pensions and retirement planning, to complex estate planning advice.
We offer expert independent financial advice throughout Cambridgeshire, Leicestershire, Suffolk, East Anglia and the South East. Many of our clients are within, or are in the surrounding areas of Cambridge, Grantham, Stamford, Bury St Edmunds, Frinton on Sea, Ely, Peterborough, Huntingdon, Cambourne, Newmarket, Soham and Oundle.
The information contained is for guidance only and does not constitute financial advice. It is based on our understanding of UK legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change. Accordingly, no responsibility can be assumed by Martin-Redman Partners its officers or employees, for any loss in connection with the content hereof and any such action or inaction.