As you start back at work this January, it’s an ideal time to set financial goals that can enhance your financial wellbeing. Here are 5 steps that we would like you to consider…
Set Financial Goals
Start by assessing your current financial situation and defining clear, realistic objectives. Whether it’s building an emergency fund, purchasing a home or planning for retirement, setting specific and attainable goals provide direction and motivation. According to a survey, 38% of UK adults feel well-informed about their personal financial situation, highlighting the importance of financial awareness.
Increase Your Pension Contributions
Planning for retirement is very important, but many find it complex due to the legalities always changing. To ensure a comfortable retirement, consider increasing your pension contributions. Even the smallest of increases can significantly impact your retirement savings over time.
Increase Your Savings
Building a robust savings habit is essential for financial security. In July 2024, UK households deposited a net amount of £0.3 billion with banks and building societies, indicating a positive savings trend. We advise to regularly set aside a portion of your income to build an emergency fund covering at least three to six months’ worth of expenses.
Managing Your Debt
Managing and reducing your debt is vital for financial health. It’s prudent to review your debts and develop a repayment plan. Focus on paying off high-interest debts first and consider consolidating loans to secure lower interest rates, thereby reducing overall repayments amounts.
Diversify Your Investments
Investing can be a powerful tool for wealth accumulation. As of 2023, UK resident investment funds managed approximately £1.6 trillion in assets, reflecting a diverse investment landscape. Diversifying your investment portfolio across various asset classes can mitigate risks and enhance potential returns. The best advice is to speak to one of our Financial Advisers, who can help tailor an investment strategy aligned with your risk tolerance and financial goals.
Starting to set financial goals in 2025 can help set the foundation for a more secure and prosperous future. Regularly reviewing and adjusting your financial plans in response to changing circumstances will help ensure you remain on track to achieve your objectives.
If you would like to speak to one of our Financial Advisers, then please get in touch.
* Investments carry risks. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.