Review Your Finances This New Year
Reviewing your finances could probably save you hundreds, if not thousands, of pounds and the New Year is a good time to do it. If you feel daunted by this task, don’t worry. Below is a check list to help you get started.
Slash your heating bills.
This one is easy, but many people just don’t do it. If you are paying your gas and electricity provider’s standard rates, you could cut your bills by an average of £325 a year. The major suppliers have launched cheaper tariffs recently, so even if you have switched before, you might be able to get further savings by switching again. Check for the best value deal for your usage. It only takes a few minutes and you can do this online.
Cut your insurance costs.
Staying with the same insurer year after year is easy and generally your car and home insurance is automatically renewed. However, it’s worth the time to shop around and get new quotes. You could save an average of £180 on your annual car insurance policy and £122 on home insurance. Remember when checking costs to also compare the level of coverage as well.
Make your savings work harder.
Check the rate you are getting on your savings. You might be able to beat that rate by moving your savings. Right now, the Bank of England base rate is at a historic low and you do want the highest return for your money.
ISA
If you have not yet used your ISA allowance, make sure to take advantage of this before the end of the tax year on April 5th as returns are tax-free. People over the age of 50 on or before April 5th, can invest up to £10,200 in an ISA – £5,100 which can be put in a cash ISA. People under the age of 50 can shelter up to £7,200, £3,600 which can be put in a cash ISA.
Fixed rate bonds.
Consider a fixed rate bond if you have extra money you can leave untouched for a few years. The rates are higher than those on easy access accounts.
Easy access.
Easy access accounts are paying significantly more than the 0.5% base rate.
Cut the cost of credit.
It is more difficult to get credit these days because of the credit crunch and generally also more expensive to borrow this way. However, there are still some deals out there if you have a good credit history, so you can still save a huge amount in interest by moving to a more competitive company.