Set your financial resolutions for 2019

The New Year is a time for resolutions, to set goals and aspirations which improve your life. Many people will vow to go to the gym, cut down bad habits, or pick up a new hobby. However, how many of your New Years’ resolutions are financial?

We have pulled out some top tips for inspiration, which may help you improve your financial wellbeing: 

1. Evaluate your charitable giving

Christmas may be the time for giving, but it does not need to stop there. UK adults donated more than £10 billion to charity last year [1], and 2019 will no doubt see philanthropy remain as popular as ever. However, if you do plan to begin charitable giving, it is worth understanding how to do so as tax-efficiently as possible. For instance, many employers run Payroll Giving Schemes that allow donation before tax is deducted from a salary. Meanwhile, leaving a charitable donation in your will can reduce your eventual inheritance tax liability.   

2. Make your money work harder

You may have some cash earmarked for other things, but if not, it’s worth keeping in mind that 2019 is set to be another year of low interest rates and rising inflation. This will mean your cash savings will lose value if inflation is higher than your savings rate. 
Investing is the best way to make your money work as hard as you do in the long term. In the current climate, with economic uncertainty in the UK, consider global diversification across a variety of asset classes to balance your risk and return. Speak to one of our expert team to find out more about which investment strategies suit your specific personal goals.

3. Get to grips with your pension pot

More than 15 million [2] people are saving in workplace pension schemes, but many are sitting on the lowest contribution, haven’t invested appropriately, or are unaware of how much they need to save. Others savers may face unexpected tax penalties should they cross the lifetime allowance or annual allowance limits. In either instance, a regular review of your pension pot will pay dividends later.  

Now might be the time to discuss your retirement planning with a financial adviser. 

4. Protect your finances

Thinking about worst case scenarios can be difficult, but that is one of the reasons why just 1 in 10 adults within the UK have some form of income protection in place, should they become unable to work [3]. Paying a regular premium for financial protection can provide peace of mind, to both you and any loved ones who are financially dependent.

5. Put time aside to budget 

Budgeting is an easy thing to let slip, but it’s a crucial element of being financially healthy. If you don’t work with a financial adviser, set aside time every couple of months to go through your key financial statements. Look at all your assets and liabilities, income and outgoings and compare your financial spending with your goals. These may be short term such as travelling or funding a lavish Christmas in 2019, mid-term such as buying a home, or long term such as retirement planning. Be specific with your plan – tangible, achievable steps are the only way to hit your savings goals. 

Please note that any tax benefits will depend on your personal tax position and rules are subject to change. The value of investments can go down as well as up and you may get back less than you invested. This article is not intended to be an offer or solicitation to buy or sell securities, nor does it constitute a personal recommendation.

Managing your finances can seem daunting or complex at times, especially if your financial circumstances change, so now might be the time to think about discussing them with a financial adviser.  

We have a team of qualified and experienced financial planners who can work with you face-to-face to build a sound, flexible strategy to meet your goals. Alternatively, our Telephone Advice Service provides this same professional service and is suited to those who prefer the convenience and flexibility of seeking financial advice, without needing to meet their financial planner in person.

For more information, either submit an enquiry online or call us on 0800 588 4064.

[1] https://www.cafonline.org/about-us/publications/2018-publications/uk-giving-report-2018
[2] https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/workplacepensions/articles/pensionparticipationatrecordhighbutcontributionsclusteratminimumlevels/2018-05-04
[3] https://www.mortgagesolutions.co.uk/news/2018/11/05/just-one-in-10-brokers-think-they-sell-enough-protection-legal-and-general/