Take care of the pennies

Well it certainly looks as if our lives are going to gradually return to some kind of normality in the next few months as restrictions are lifted. However as I have previously noted, I do think it’s important to gain something from the past year.

I know that some individuals have lost close family members and people who have been very dear to them, whereas others may have faced a lot of financial hardship, therefore the last few months and certainly the past year must have been very hard. I think it’s fair to say that none of us saw this coming, and in fact I have one client who wrote contingency plans for her company in case something like this happened, and she said it was never factored in that children wouldn’t be able to go to school. So before our lives return to some normality I think it’s a good time to reflect on the last year.

Previously, when I have asked questions about sickness cover and life insurance, quite often individuals believe that they don’t need this protection as they feel it’s unlikely to happen to them, so on reflection it may be a good time to review this stance.

After talking to many people I am aware that due to the ‘stay home’ restrictions their spending has decreased in this past year and many have realised even more so the importance of saving funds for a rainy day. If you fall into this category have you thought about comparing your expenditure over the last 6 months and comparing it to the same six months prior to the beginning of the lockdown? This may be a good way of setting a budget going forward. I am a strong believer of the quote, “If you look after the pennies the pounds will take care of themselves.”

When you have reviewed your budget going forward, if you realise that you do have some spare funds it may be a good time to look at your Pension and Mortgage if you have these. For example have you ever looked at the interest you would save yourself if you overpaid your mortgage by £100 each month? Although do check first that you can do this without incurring penalties. Or if you pay an extra £100 into your Pension or savings what effect would this have? In the past when I have carried out this exercise with clients they have often been very surprised at the results.

This could be a good time for you to seize the opportunity of our free without-obligation consultation to help you set your budget going forward.

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