Want to get your money in shape for the new decade? Start with these expert tips.
7 January 2021| Last updated on 18 January 2021
All Credits: PA
Whatever your goals or intentions for 2021, having your personal finances in order is always a good place to start.
Not only does this make budgeting, saving for the future and avoiding debt much easier, it also helps reduce the amount of stress in our lives – and helps keep those savings pots for rainy-days and fun topped up.
Looking for some financial inspiration for the new year? Here are some tips from Laura Suter, a personal finance analyst.
1. Start a ‘money club’
Start a ‘money club’ with friends that focuses on any aspect of money, so a savings club, an investing club, or a paying-down-debt club. Firstly, it will start you talking about money. But also, much like weight loss or pregnancy groups, having the support of people in the same situation will help you to learn tips to achieve your goals – as well as holding you accountable.
3. Build an emergency fund
Lots of people will struggle if they have an unexpected cost. But if you squirrel away a little bit of money each week or month it can add up – even by starting with a small amount. You can also use rounding-up services offered by many banks, where they round up your purchases to the nearest pound and save the difference.
5. Tackle your pension
Make sure you know who your provider is, how much you’re paying and what that money is invested in. You could also use online calculators to look at how much your pot is likely to grow to by the time you retire.
6. Start saving for children
Putting away just £100/AED483.31 a year every year since a child was born can add up to £3,000/AED14,499.24 when they turn 18, assuming it’s invested and gets 5% a year growth after fees. Putting away £50/AED241.65 a month could equal more than £18,000/AED86,995.45 by the time they turn 18. The value of investments can go down as well as up.