Top Ten Tips

Here are our Top Ten Tips

1. Identify your goals:

Do you have a clear idea of your priorities in life? Identifying the goals in life that are most important to you and your partner/family and starting to plan for them is the first step in financial planning. Planning should look at differing timescale's:

• In the short term e.g. next year’s holiday, moving house;

• In the medium term e.g. having children, travelling, start your own business;

• In the long term e.g. retirement;

Establishing the costs of your goals and also applying timescale's to each of them is important. Write your goals down and review them regularly. Don’t forget – if you fail to plan then plan to fail!

2. Know what you are worth:

Did you know that your net worth is the difference between what you own and what you owe? It is good to set specific targets; include precise timescale's to increase your net worth in line with your goals in life.

3. Budgeting:

Draw up a budget and make sure you stick to it. You should aim to spend less than you earn, but if you don’t, then you should be working on ways to cut your costs and/or find other ways to increase your income, rather than borrowing to pay bills or to pay for shopping/holidays.

4. Debts:

Borrow only what you really need and before you take out a loan or credit card, find out the true cost of the borrowing - interest charges can greatly increase the total cost of your purchase! Work out a plan to pay off your debts as quickly as you can. You may tackle your high interest debts first, like credit cards although be careful to prioritise mortgage repayments, tax bills, utility bills too as non payment can have very serious consequences.

5. Stash some cash:

Try to use a deposit account to save for an emergency fund of at least 2-3 month’s income (this is important to do even if you're paying off a mortgage, but not if you've got high interest debt). This will help cover you for unforeseen emergencies such as if your car breaks down or you lose your job.

6. Save:

Once you've paid off your high interest debts and you have got your emergency cash fund, start saving on a monthly basis for your shorter and medium term goals e.g. a summer holiday, a new car, Christmas, house renovations etc

7. Get yourself protected:

Protect yourself and your assets against unforeseen events. Make sure you and your family have the right amount of cover against illness, accident, death etc. If not properly protected, your finances and your life, could easily be derailed.

Other tips on protection:

• Are your main assets like your car, income and house covered?

• Have you made a will and is it up to date?

• Consider setting up a lasting power of attorney as a precaution

8. Retirement plans:

Make a financial plan for your retirement. Do you have access to a workplace pension scheme? Even if you still have debt, seriously consider joining it, especially if your employer will make a contribution too.

9. Investing – not just for the rich:

Investments are not just for the rich! It opens up opportunities to make your money work harder for you over the long-term. Ensure you look into ways to help reduce the tax you have to pay on your investment returns.

10. Spread the word:

Teach your children/grandchildren about money – the earlier they learn, the better they will be at managing their own money.

Contact us or let us call you!

Ten Other Things You Should Do

Contact us and we can put you in touch with our Professional Connections for wills and all other aspects of legal work

We provide advice on the following:

Areas we cover

We cover Tyneside, Wearside and Durham and are happy to meet you at home, office or place of work as you prefer.

Sign-up to our Newsletter

CALL US: 0191 516 6353

Advice with Integrity