Planning for your new financial year

We all have New Year’s resolutions, but they are often not worth the paper they are written on or the hard drive they are saved on. Saving into an ISA at moneysupermarket can be a start.

From a financial point of view, we all plan to spend less in the coming year but often circumstances make it difficult for us to adhere to our plans.

With the world economy the way it is and many European countries bordering on default, saving must be at the top of the list. It is always a good idea to compare ISAs at moneysupermarket and other such comparison sites so you know that you have the best savings vehicle for your circumstances.

Financial planning for the next year should not be left until the last moment. Start earlier rather than later, so that the Christmas period won’t find you spending when you should be saving instead.

It makes good sense to plan your financial life from the start. Draw up a monthly budget and stick to it.

Longer-term financial goals should be next. If you stick to these plans, you will have the money saved for big expenses such as buying a home or a car but will also have cash available for short-term needs.

A financial budget will help you at the beginning of every New Year. You will not have to start a whole new plan from scratch but will only have to revise the standing one.

One of your resolutions might be to pay off more on your mortgage loan. If you have decided upfront that you are going to pay off more than the required amount, you will find that you can pay off your property years ahead of time.

Plan to pay off all or most of the debt that you have. Consolidate your debt into one bad credit credit card. This means that you have only one debt repayment.

Many brokers can also assist with consolidating your debt. They often have high fees, however and you should take care what you choose.

If your debt levels are giving you sleepless nights, you might want to consider additional income. Try to find an extra job or turn a hobby into an income generating sideline.

Any member of the household who is of working age and who is unemployed should try to find gainful employment. If you like children, you can start to care for the children in the neighborhood at a rate cheaper than the conventional one.

In this way you will make money and the neighbor will save money on childcare. If you can care for the children of more than one parent, it means an even better income.

Energy comes at a premium. This is a worldwide phenomenon. Reduce your electricity use to cut your own electricity bill but also to do your bit for the environment.

Our financial well being forms a large part of our day-to-day lives. It makes it possible for us to own homes and to educate our children the way we want to.

When you do your planning for the next year, involve your children in the process. They are never too young to learn how to handle their own affairs.