Top financial tips for everyone during these challenging times, particularly as we begin to see easing of restrictions, written by our own Jenny Madhoo, Chartered Financial Planner.
Are you finding you suddenly have time on your hands these days? Suddenly you are finding the time and your wardrobe has never been tidier, the bathroom has never been cleaner, you’ve gone full Alan Titchmarsh on the garden?
How about giving your finances some of the same attention to detail?
- Emergency fund. Do you have one? Where is it?
- How much is it? Start building it today. Aim for 3 months of outgoings to be covered.
- Put your emergency fund aside in a separate, instant access account; somewhere you won’t be tempted to spend it.
- Review your incomes and outgoings. How much do you have coming in each month, and how much is going out?
- What’s left at the end of any given month? Go back and look at the last 6 months?
- What if you automated a regular transfer into a savings account at the start of each month?
- Check your direct debits and standing orders. These are easy to use if you have online banking. Are they all still necessary? What about those random payments to Apple or Amazon?
- Have a separate holiday account. Holidays are a chunky, irregular spend, but you can spread the cost by putting a little away each month into a separate, easy access account. Then you don’t need to dip into savings or use a credit card to book your next trip.
- What are you doing with long term money? Cash savings are there to cover emergencies, and any expenses you expect in the next circa 5 years. But what about longer-term savings? For when the kids are grown up? Or when you want to retire from work? Longer-term money may need to be invested. Do you have any investment experience?
- Look up your local Financial Planner who can help you with this next step here.