Managing money – and coming out on top – is a complex process, coloured by financial savvy, economic influences, personal goals, and a host of other factors. In order to get the job done, household money managers draw on all the tools at their disposal, increasing their chances of succeeding and reaching their financial goals. Knowledge and information are two key components of effective personal financial management, enabling families to make prudent steps toward their monetary priorities.
Studying money management trends and adopting the most effective strategies can help circumvent missteps and accelerate your progress toward financial stability and security. Recent leanings highlight a few noteworthy approaches, which you can use to further your financial goals.
Access to information and a shift toward eliminating “middlemen” has changed the status quo, including money management methods. More and more UK residents are taking control of their own financial futures, by self-administering investments and retirement resources.
Instead of hiring fund managers and personal financial advisors to guide their reserves, independent investors are now more likely than ever before to seek out information and make their own financial decisions, without the help of paid professionals. There is risk inherent to the approach, but with so much information available to consumers, many are taking matters into their own hands, with confidence. For the best results with self-management, consider financial planning information made available by the government and money charities, which addresses many of the most frequently asked questions about personal finance.
Savings rates have lingered at low levels for many months, changing the way some investors view bonds. An interest rate hike is likely to help savers, projected to occur before the end of the year. But in the meantime, the Government’s National Savings and Investments now allows individuals to hold higher amounts of premium bonds. The change, made in 2015, increased the amount of premium bonds savers can hold from £40,000 to £50,000. The rate of return is not terribly impressive, averaging around 1.25 per cent, but considering the dismal performance of savings, premium bonds present an attractive alternative.
Hand-Held Money Management
Automation continues to sweep across society, replacing human interactions with electronic alternatives. The trend has taken-hold in personal banking, giving money managers the opportunity to control most aspects of their finances, at their fingertips. Smartphones now facilitate account management as well as the ability to pay for goods and services. As a result of the streamlined approach to banking and finance, traditional bank branches are closing regularly.
Personal loans serve diverse funding needs, from car buys to home improvements. The market provides wide-ranging options for consumers in need, including lenders extending funds to bad credit applicants. These short-term finance solutions usually have very specific repayment requirements, often tied to payday promises. Although they must be paid back quickly, the way the money’s used isn’t restricted to particular purposes. And compared to high interest credit card rates, alternative financing is a more affordable approach for flexible funding.
The Brexit vote shook up the economy, though it fared better than many analysts predicted. The true scope of Brexit’s impact is yet to be seen, but many investors have taken a second look at the UK stock market, choosing to diversify across international markets.
Meeting Inflation Head-On
The period from 1997 to 2007 was marked by steadily increasing incomes across the UK. If you are like many earners, it is painfully obvious the trend has not continued, following the global financial crisis that occurred nearly a decade ago. Consumer confidence remains high, and though debt has risen; households are finding ways to make ends meet – despite climbing inflation and high house prices. An interest rate hike, expected this year, should help hedge against runaway inflation. In the meantime, families are cutting-back on holiday spending overseas and making other concessions to stay solvent. Until household incomes begin trending upward, however; sustained financial stability is a stretch for stagnant earners.
Finding financial security calls for insight and discipline. From personal investment strategies to household spending behavior, watching trends and applying winning strategies can help push your finances in the right direction.