Financial Planning

Financial New Year’s Resolutions for 2020

KLOFinancial |

It’s January 2020 – the start of not only a new year, but a new decade too. Do you have a New Year’s resolution? Have you broken it yet?

An estimated 26 million people will start trying to lose weight at the start of a new year, with 9 out of 10 breaking their new healthy habits by 12th January. Shaping your finances can be a similar challenge – it’s important that you make your New Year’s Resolution a habit that continues throughout the year.

Getting help is important. Whether you require professional financial advice from an independent financial adviser or want a family member to keep you in check, having time to review how you are doing will help you keep your financial habits in check.

Here are three New Year’s resolutions you may want to consider:

Tidy up your finances

One of the main New Year’s resolutions you should consider is tidying up your finances.

Over time, it is easy to accumulate many savings accounts and credit cards. Often people take out credit cards to take advantage of good interest rates or save for a particular purpose. Not only does this make it more difficult to keep track of your spending and expenses, you may be left vulnerable to fraud.

Maximise your pension contributions

If you are in a company pension scheme, you should consider whether you are making the right level of contributions. Many workplaces now offer a generous matched funding of contributions, and if you can afford to do so, you should consider increasing your contributions to the maximum.

In doing so, you can prepare for retirement and receive tax relief on your contribution. Make sure you futureproof your retirement finances.  

Prepare for the future

Rules and laws surrounding the topic of finances are constantly updating, with new proposed changes offered every year. For example, the Office of Tax Simplification have recently proposed many changes to inheritance tax rules that may impact estate planning.

As part of your New Year’s resolution, you should start preparing for the future. Even if you are living comfortably, you never know what is likely to change as you get older. Stay ahead of the curve and maximise your savings.

You can also do this through investments. You may want to think about investing for the opportunity to obtain higher returns. It is, however, important to note that any type of investment comes with risk and you may not get back the original amount invested.

KLO Financial Services can support you with whatever you need. Talk to one of our local independent financial advisers to keep your finances in check this year. Call your local office and find out more:

Happy New Year from KLO Financial Services!