The new year is always a time for reviewing your life and your finances should be no different. Why not take a little time to do the following checks on your financial situation. Here are our 5 financial resolutions for the year ahead.
Prepare for an interest rate rise
Interest rate are at historic lows at the moment. Realistically the only way for interest rates to go in 2017 is up. Higher interest rates are good for savers and not so good for mortgage payers.
So it is useful to look to move your mortgage to one with a better rate, which could save you hundreds or even thousands in a few years. Take a look at your current mortgage and see if you can move without penalty.
If you’re a saver you can look to move to better savings accounts and benefit from the higher interest rates.
Claim your pension tax relief
Tax relief means some of the money that would have gone to the government as tax goes into your pension instead. You can put as much as you want into your pension, but there are annual and lifetime limits on how much tax relief you get on your pension contributions.
Budgeting for the year ahead
We can usually predict some of the large expenses that we will have in the next year. These could be replacing the car, renovating the home or having a child start school. By having an idea that these costs are coming up you will have an idea what your spending will be like in the year ahead and avoid nasty unexpected bills.
Review your insurance
Have there been any big changes to your personal circumstances in the year? Taking some time now to review your personal insurance cover will help to ensure it continues to fit your needs. Doing this before you go on holidays, especially if you are travelling overseas, will also provide some peace of mind that you and your family are covered should anything unforeseen happen.
Open a Lifetime Isa
The Lifetime Isa of the LISA allows you to Save up to £4,000 each year, and receive a government bonus of 25% – that’s a bonus of up to £1,000 a year. You can use some or all of the money to buy your first home, or keep it until you’re 60 – the choice is yours.
If you open a Lifetime ISA account between the ages of 18 and 40, and any savings you put into it before your 50th birthday will receive an added 25% bonus from the government. there is no maximum monthly contribution – you can save as little or as much as you want each month, up to £4,000 a year. The total amount you can save each year into all ISAs will also be increased from £15,240 to £20,000 from April 2017, when you can open a LISA.
Do you have any other financial resolutions to add to our list ? We would love to hear them.