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New Year Savings and Expenditure Planning

cotswold finincial planning blogThis time of year is always an expensive one. With an average spend of around £850 on Christmas in the UK, many of us spend more than we actually have at Christmas, leaving January a time of paying off debts on credit cards and finance.

This year, why not make a change and put a plan in place to ensure that when Christmas comes around next year, you will not be out of pocket as you can plan to save enough to cover the costs in advance, leaving you debt-free.

Where to start?

A really good starting point is to take a look at your monthly spending. Look at your bank statements. Are there any unnecessary outgoings that you no longer need or require. Taking a look to see if there are any regular monthly payments that you could cancel can actual save you more than you would think.

Take a look at things like phone contracts, TV contracts, energy bills, mortgage payments, childcare...can you reduce your monthly spend here? Are there any savings to be made here?

How much do you spend on travel, fuel, food each month? Would this money be better off in your savings?

Making small adjustments can often make big gains!

By breaking down your monthly spending habits, you will have a greater understanding on where your money is going every month and how much you could realistically save.

Keep it up

Making these small changes across 12 months can really impact on your savings. Make a plan on where you will put these savings, such as an ISA, Premium bonds or another savings account, to keep separate from your day to day spends.

By making small lifestyle changes, like making yourself a coffee to take to work with you rather than stopping off at the coffee shop on your way each morning, or changing a few of your outgoings you will see a massive impact in the amount that you can reasonably save a year. For example, by cutting out that daily cup of coffee from the coffee shop each day can be a massive saving of £600 a year! When you sum it up like that, it can give you the hope and inspiration that you might need to make a few changes and start that savings pot!

If you would like some advice and guidance on your financial situation, whether it be investments, ISAs, mortgages or protection, our trusted and knowledgeable advisors at Cotswold Financial Planning are here to assist you in your financial queries. Contact us on 01608 651608 or via our enquiry form and we will be happy to discuss your requirements.