WITH 2008 fast approaching, the start of a new year is a great time to spring clean and take control of your finances. Here are a few ideas to make next year a better one financially.
Study your bank statements. Don't just file them unread. Instead, try to analyse what is going in and out of your account each month to identify any problems areas. If you are in the red, this will highlight where you need to curb spending and modify any aspects of your life in which you are overspending.
To get your monthly balance going the right way, try examining ways of saving money. If you have credit cards, swap them to 0 per cent deals. If you have a mortgage or any protection polices, examine how suitable they are to you now. An independent financial adviser (IFA) can help with this audit and can help you become more disciplined with money.
If you are already saving money and not in debt, ensure these savings are working harder for you this year. Firstly, ensure you have around three months
net salary saved in an instant access account in case something unexpected comes up that you need to pay for.
Be tax efficient. You should look at longer term savings plans such as Individual Savings Accounts (
ISAs) or pensions. When starting a pension, do remember that the earlier you start, the easier (and earlier) your retirement could be.
Of course it is imperative to regularly review your finances to make sure your money is working its hardest for you and it is sensible to do this with an IFA.
For help with planning your new year's financial makeover or improving any aspect of your personal finances, find an IFA in your local area online at www.unbiased.co.uk or call 0800 085 3250.
On behalf of IFA Promotion and unbiased.co.uk, I wish you a very happy and financially prosperous new year.
? David Elms is chief executive of unbiased.co.uk
