What are your New Year Financial Resolutions for 2021?

Although 2021 didn’t start as we’d all hoped, setting financial goals this year will certainly reward you in the years to come. Your journey starts here!

1. Determine where you are and where you want to be financially

Like many people, you may have made new year resolutions to manage your money more effectively and save more towards your future, but where do you start?

Ask yourself the following questions:

    • How can I reduce my outgoings or increase my income to save more?
    • How well are my existing investments and pensions are performing?
    • What are my investments and pensions are currently worth?
    • What I am invested in?
    • Am I confident that my pension is on target to provide my desired income in retirement?
    • Are my finances as tax efficient as possible?
    • Do I have a Financial Plan?

Rather than focusing just on saving, think about the lifestyle and goals you want to achieve in the future. Visualise yourself enjoying these things as a result of your efforts now!

TIP: Do three things this year to support your future, such as having a pension review, increasing your monthly pension contribution and setting a motivational retirement goal.

 

2. Plan for the medium to long-term

As we go through the different phases of life, our priorities change.

A Financial Plan highlights key stages in your life where you may want to generate more income or dip into your savings to achieve your goals. Think of it like a timeline into your future.

Ask yourself:

  • At what age do I want to retire?
  • When do I want to be debt or mortgage free?
  • What do I want my retirement to look like?
  • Do I aspire to privately educate my children or grandchildren?
  • Do I want to provide my family with an inheritance?

Your Financial Plan can help you to think about the timescales you have to achieve your goals and what you need to do now to be ready.

TIP: Note down your medium and long-term financial goals and look at the timeframe you have to achieve them. Start saving today!

 

3. Be smarter with your money

Managing your investments wisely can make an enormous difference, which is why so many people turn to a financial adviser for help.

There are many ways to make your money work harder and to reduce tax implications. It is the role of a financial adviser to know and comply with financial regulations and to determine the best route for the client. The financial plan they create will take into consideration the client’s personal circumstances and will aim to help them to achieve their financial goals within the determined timescales.

Investments should be reviewed and managed regularly to see if they are still performing. Spreading your money across different assets and markets, known as diversifying, is very important and can minimise risk.

Time is also a huge factor in saving and investing. As your savings and the interest earned on them is compounded over time, the multiplication effect can significantly increase the actual sum invested. Remember that your investments can go down as well as up.

TIP: Get expert advice – speak to a financial adviser about your unique requirements. Don’t leave your future to chance. This article isn’t personal advice.


Start your journey today by speaking with an Independent Financial Adviser at Innes Reid. The first consultation is free with no obligation. Contact us on Tel: 01244 347583 or by email on info@innesreid.co.uk.

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