Now that all the mayhem that goes along with Christmas has subsided, this is the perfect time for a serious financial detox! Take the time over the holidays to sit down and consider those all-important figures and take some active steps to review and reset your personal financial goals.
Here are the various areas you should consider reviewing:
Create or review your budget
Creating a detailed budget is the simplest way to gain a complete overview of your finances as you will be able to identify where your money is going and what is coming in.
Creating a budget can also help clear up uncertainty or fear around money. Identify what category you are spending the most in and look at what possible savings you could make to help create a better and stronger savings strategy.
Redefine your financial goals
Now that you have reviewed your budget, you will know how much you have available to put into savings so you can plan around what you want to do with that money. Maybe you want to save for a dream trip in 2022 or upgrade your car in 2023!
Perhaps you want to invest in your children’s third level education or save towards a house deposit. You need to think about what savings goals are now achievable for you and put your plan in place.
Review your pension
If you haven’t reviewed your pension for a while, now is a good time. Perhaps your fund value has dropped or are you even sure that you’re your current fund is the right one for you?
Engage with a financial advisor and to conduct an in-depth review and help you ensure that your fund is in line with your unique personal circumstances and retirement objectives.
Review your taxes for next year
Each year when the tax deadline comes around you might be thinking “next year will be the year that I’m going to be more efficient at managing my taxes”, well now is the time to review your whole tax situation and ensure that you are claiming all the reliefs you are entitled to.
Look at the various ways you can claim more tax back, like maybe topping up your pension.
Review insurance policies
Having insurance is a responsible and necessary part of life, however, you may find that you are paying for cover you do not necessarily need, or perhaps, that you are taking an unnecessary risk by not having enough cover.
By reviewing your insurance policies, you may find you could potentially save money or are uninsured in an area where you need cover.
Review your loans
Consider reviewing your credit cards and all your loans including your mortgage.
We are currently seeing the lowest mortgage rates for years so now is a great time to consider refinancing and locking in a lower rate.
Seek a professional financial advisor
Engaging the services of a Professional Financial Advisor will ensure you are in the best possible position to reach your financial goals. They will help you to stay on track and review each area of your finances to ensure it’s working for you. This will help you gain a clear plan and strategy around your finances and the confidence of knowing that you are on the right path.
Whilst your finances might seem a little out of control during the holiday season, a new year brings a fresh start. Taking stock now and winning back control of your financial goals will bring much greater peace of mind.
Happy New Year and happy planning!