1. Need some extra money and have a spare room which you could rent out? You could earn up to £4,250 a year tax free by taking in a lodger. According to new research 7 out of 10 homeowners have unused spare rooms, try websites like SpareRoom or Flatshare if you would like to find out more information.
2. Credit cards – the average rate of a credit card is 18.9%, but there are plenty on the market which offer 0% for transfers, or less, so if you are stuck paying a high rate of interest then consider transferring your balance over to another credit card which offers a lower rate, you could check out a credit card comparison website such as www.comparethemarket.com. However comparison sites do not always offer the best rates on the market, so make sure you do some research before entering into a credit agreement.
3. Do you know what your credit rating is? A bad credit rating would make it difficult for you to apply for the best rates when applying for a loan or credit card. It’s easy, and relatively inexpensive to find out what your credit rating is, you can get credit references from Experian, Equifax or Callcredit. If you have a low credit rating, you can then start to tackle any problems by approaching the various companies or problems listed, this could be as simple as not registering your address with your local authority.
4. Planning on going abroad? Then rather than drawing money on a credit card from an ATM, which can be expensive, order in advance and you could benefit from 0% commission, and have the money either delivered to your door or the airport. If you would like to draw money from an ATM then ask your bank who their international partners are, as you could save money on the price of drawing out money. For example if you draw out money from Barclays from an ATM you will normally pay a charge of £1.50 plus the exchange rate commission, but if you use one of their partners such as BNP you will not need to pay the charge of £1.50.
Take a photocopy of your passport, just incase it gets stolen, and make sure you write the number of your bank on separate piece of paper, and keep it in a place other than your wallet or purse, just incase you need to contact them urgently.
5. How long would you be able to survive if you couldn’t work? Ideally you would have a six months buffer, but the average person has just 19 days worth of savings. Consider looking at how you could protect yourself if you couldn't work.
6. Save money by using an ISA – 2013 – 2014 the full allowance is £11,520. If you need individual advice on the different types of ISA's then you could contact an IFA.
7. Consider taking out income protection if you fall ill or can’t work. Statuary sick pay in the UK is £86.70 per week, although the average household spends £483 per week (based on 2012 figures), so you might need to consider taking out an insurance to make up the difference. You will need to make sure you can afford the repayments on any policy you take out.
8. Motor insurance – if you add your partner to your policy you could pay less, as statistics show that motorists who have another named partner on their policy are less likely to have an accident.
9. Check out your home insurance policy before the renewal date, make sure that all doors and windows have proper security locking devices, as if you have a break in, and these do not conform to the specifications within your policy you might not be insured.
10. Make a list of when all of your direct debits and bank payments go out, so that you can make sure you don’t got overdrawn at any point. By arranging an arranged overdraft in advance could avoid high costs of going overdrawn, however you need to bear in mind that an overdraft facility can be withdrawn by the bank at any time, without prior notice.
These are just a few pointers of how you can manage your finances, if you would like a more specific plan, or would like us to go through and help you to save money, then why not give one of our experts a call.
Issued by: Enable Independent Financial Life Planners 25c North Street, Bishops Stortford, Herts CM23 2LD Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.
No comments:
Post a Comment