With more downtime on your hands, now is a good time to take stock of your finances, revisit your goals, and put together a plan for how you might achieve them. To help navigate these challenging times, we have put together five top tips for how you can make the most of time at home spending less and saving more.
- Cut down your outgoings
Going through your bank statement is a quick and easy way of identifying unnecessary outgoings that you can turn into real life savings. Cancelling any unused subscriptions and limiting your online purchases could potentially save you hundreds of pounds over the next few months; a saving that could go a long way elsewhere.
Use our personal money check up tool to check your financial fitness.
- Stick to a plan
Perhaps your savings goals are more short-term, either way, it’s always a good idea to put together a budget. List your goals, map them against any income and expenses and you have the beginning of a financial plan, which, if you stick to it, can make a huge difference to you and your family’s future, long or short-term.
- Take advantage of technology
While your fitness app might be helpful to keep you moving - there are a range of money apps that can help improve your financial health too. Installing an app onto your phone will give you real time information about your savings, investments and spending habits.
- Get on top of pension admin
This may not sound like the most riveting evening ever, but it could be one of the most important. Getting on top of your ‘life admin’ could mean a lot of things including reviewing your pension and pension allowances.
The annual allowance - remains the same at £40,000, with the lifetime allowance increasing slightly to just over £1.073m.
The biggest change this year has been to something called the tapered annual allowance. This affects high-earners - prior to April 6, those that earned over £110,000 could have had their annual allowance reduced, potentially down to £10,000. The government has now increased the amount you can earn before the tapered annual allowance affects you. From 6 April 2020, it can come into play when earnings cross the threshold of £200,000. And when it does, the revised tapered annual allowance could reduce your annual allowance down to £4,000.
- Continue to save for the future
Your retirement can feel like a long way off - especially when you’re busy juggling working from home and childcare duties but its important not to lose sight of the things that matter. Any savings you currently have, or can start building early on, will do you wonders in the long-run. Take our 1% challenge and see how small changes can make a big difference when it comes to your pension.
Important Information – The value of investments can go down as well as up, so you may get back less than you invest. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. Withdrawals from a pension product will not normally be possible until you reach age 55. Tax treatment depends on individual circumstances and all tax rules may change in the future.