Make your money go futher in 2023

MAKE YOUR MONEY GO FURTHER IN 2023

The start of a new year is the perfect time to take a fresh look at your finances and make your money stretch further, writes Samuel Gee of Manning Gee Investments.

The cost-of-living crisis is making it harder than ever to make ends meet for many of us. Rising household bills and a looming recession are set to put people’s finances under even greater strain during 2023.

But by having a clear understanding of your financial situation and a bit of planning ahead, you may be able to weather the economic storm.

Here are our top tips for boosting your financial wellbeing in 2023: Get financially organised. Check your income and outgoings; are there any savings to be made? Do you really need to subscribe to so many streaming and delivery services? Cutting back on Netflix or Prime deliveries are simple ways to save money. The more you’re aware of your financial situation, the better off you’re likely to be. Simply burying your head in the sand will only lead to more problems whereas having an awareness of your financial position makes it possible to find solutions.

Have an emergency fund. If you haven’t got one, make this your biggest immediate goal if you can. Aim to save your first £1,000 or whatever amount you can put aside. Something is better than nothing. This will provide you with greater finanPay down your debts. Pay off the smallest debts first if you can, not necessarily the highest interest ones. The satisfaction of a paid-off credit card can be an amazing and liberating feeling. Don’t forget to keep an eye on offers to move balances to zero percent deals, potentially saving hundreds of pounds in interest. If you’re struggling with debt, there are some great charities like StepChange who can really help make a difference and support you in dealing with your lenders and creditors in a positive and proactive way. Protect the people you love. Low-cost life cover can be life changing for families who need it. But don’t be tempted to cut essential payments like this just to save a few pounds a month. And don’t forget to make your will otherwise the people you love may not end up with what you want them to. Family outgoings. Once you’ve achieved these steps, start to save three to six months’ worth of outgoings to help you and your family, and keep topping it up. This additional saving to your initial emergency fund will be a great base to helping protect your financial position

Invest for your retirement. Saving 15 per cent off your income should be the ideal starting point, depending on your age. But again, saving something is better than nothing if at all possible. The more you save, the better your retirement can be.

Check your mortgage. Are you on the best deal? Could you save by remortgaging with your lender or elsewhere? Ensuring what’s likely to be your largest debt is in the best place possible can free up that extra bit of cashflow to help you month-to-month. Use cash tied up in your home. In the right circumstances, equity release can be positively life-changing but shouldn’t be used for spending on frivolous items like a dream holiday. It’s crucial that you seek professional advice before making important decisions that could affect your home and your children’s inheritance. By having a better understanding of your financial situation and putting a little aside for a rainy day where possible, you can protect yourself and your loved-ones during uncertain times. For more information visit: mgi.advicefront.com