Think of us as an assistant, here to help you to reach your financial goals.
We can’t do everything for you but we’re here to help wherever we can. Although we can help you with planning for your retirement or deciding where to invest your money, there are things that you can do too that can help you keep on top of things.
In order to keep on top of your finances and to help you reach your goals, we’ve put together our top tips:
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Create a reasonable budget.
This may seem pretty obvious but it’s a great first step in working out what money you have available to you and therefore how we can help you.
The problem with setting a monthly budget is that not every month is the same. There are birthdays and holidays to consider, you’ll need to think about things like Christmas and buying your kids new school uniforms and school supplies.
Think about who the budget is for. Are you just planning for yourself or with a partner? If you have a partner, it’s best to do this together to get the most accurate results.
To get started, gather together all your monthly bills and statements to work out how much is coming in each month and how much is going out. This will help you see how much you should have left at the end of each month.
If you find that you are overstretched, take a look at what you could potentially be cutting back on each month. For example, could you get a better deal on your phone and internet plan? Could you shop at a different supermarket?
Be honest with yourself. It can be difficult to take a good hard look at your spending habits. But take the plunge! It’s really important to have an accurate budget as this will help to influence a lot of other factors surrounding your personal finances.
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Try to save as much as is feasible
Once you’ve worked out your budget, take a look at what you have left over at the end of the month. How much can you afford to put away in to savings? Don’t overstretch yourself – you’ve just spent all that time on your budget, don’t waste it! But try and put away as much as is feasible. This should allow you to have some ‘fun money’ but also have the knowledge that you’ve got something put away for the future.
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Keep a close eye on your finances
Make sure you check your statements and bills on a regular basis. Be aware of how much your bills should typically cost and how much money you have coming in at the end of each month. If you keep an eye on this, you will be able to spot if there is an unusual charge or something out of the ordinary. This lets you nip any problems in the bud and helps to keep your finances healthy.
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Be aware of who your pension provider is
In Scotland, your employer is legally obliged to enrol you in a pension scheme when you begin your contract with them. They are also required by law to contribute to it each month. However, you are not required to stick with their chosen pension provider and have the right to change over to one you have chosen for yourself.
Regardless of who has chosen your pension provider, you need to be aware of who they are. This will allow you to keep track of how much is being paid in on a monthly basis, how much you will receive should you choose to start claiming your pension and how you can go about claiming your pension.
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Keep track of all your pensions
It is possible that as you move from job to job throughout your career, that you start to curate a collection of pensions. It is important that you either gather all your pensions together under one provider or keep track of where all your pensions are.
If you think that you have lost track of a pension, there is a tool on the UK Government’s website that can help you to track it down: https://www.gov.uk/find-pension-contact-details
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Contact a financial adviser
Of course you would expect us to suggest this! But we feel that once you have your finances in order, the next logical step is to get in touch with an adviser so that we can put all your hard work to good use.
It is important to take professional advice before making any decision relating to your personal finances. Information within this article does not provide individual tailored investment advice and is for guidance only. We cannot assume legal liability for any errors or omissions it might contain. Ethical Futures llp is authorised and regulated by the Financial Conduct Authority.