It’s never a bad time to take responsibility for your finances, but the start of a new year presents a privileged opportunity to look backward and forward, at the same time. With the unique perspective, it may be possible to correct shortcomings and set your course for financial success in 2019.
Did you reach savings goals for the prior year? Are your personal debts held at a manageable level? Has your income recently changed? Answering these and other relevant personal finance questions provides some of the information you need to steer your finances in the right direction.
- Didn’t save enough? Carving savings from your spending budget may help you redirect funds to your nest egg, solving the problem in 2019.
- Debts climbing higher than your comfort level? Credit discipline and budgeting may be enough to tamp-down growing debt and establish manageable repayment.
- Earning more this year? A close look at your financial flow ensures the added income is allocated properly, maximising the impact of the extra earnings.
These examples represent only a few of the financial concerns you may encounter, kicking-off the year, with a financial focus. As you reconcile 2018 and look ahead to the new year, these tips can help you solve financial dilemmas and establish a firm foundation for the coming months.
Review and Realign Your Financial Goals
A lot of things can change over the course of a calendar year. If you haven’t recently reviewed your financial goals and weighed options for achieving them, the start of a new year furnishes a ripe opportunity to assess your ambitions. A few key areas to consider include:
- Retirement planning – ISAs, pensions, and other matters should be examined periodically, to ensure you’re making the most of available resources.
- Education savings – Families with children approaching college age need to project education expenses, so they’re ready when it’s time to attend uni.
- Emergency resources – A household emergency fund provides a layer of insulation, between you and the kind of unforeseen expenses that can ruin your budget. A six-month reserve is ideal, but even if you can’t put by the full amount, an underfunded rainy day account is far better than not having any resources, at all.
- Investments – Securities and other investments should be monitored and adjusted, in order to earn the best possible returns on your money. For results you can count on, tune-in to 2019 investing predictions and consult a trusted financial advisor.
- Putting by money for a house – Stepping on the property ladder is more difficult for Britons than ever before. If owning a house is one of your financial priorities, it’s important to keep moving the ball forward, preparing your deposit.
- Changes to your household finances – Did you add a family member last year? Or get a raise at work? Changes such as these have an impact on your household finances, so you may have to make adjustments when conditions change.
Economise Your Debt
Starting the year with too much expensive debt leaves you at a disadvantage, right out of the gate. If your revolving accounts are maxed out, generating substantial interest charges each month, it may be time to consider other forms of funding. Online lenders may be able to help, offering several types of loans for good and bad credit applicants.
Even without a credit check, several short-term loan providers will extend financing, until your next payday. The bridge loans can help you avoid adding to burgeoning credit balances. Your mortgage and student loan debt can also drag down your finances, so opportunities to consolidate or land a better interest rate can provide relief.
Managing money is a year-round job, but setting-off on the right foot is a great way to approach 2019. If you’re ready for prosperity and better financial health in in the new year, review your financial agenda and take steps to reduce costly debt payments.