Making New Year’s resolutions concerning your finances can be a daunting prospect, especially when you consider the range of topics that need to be addressed. From creating budgets and setting saving goals to fixing your credit score and investing wisely – there are so many elements to take into consideration when it comes to financial advice.
It can often feel overwhelming for those who are just starting out on their journey toward responsible money management, or simply don’t know where to begin.
If you own a Business
Business owners also often struggle to stay on top of their finances due to the complexity and ever-changing nature of the business landscape. With multiple expenses, taxes, payrolls, investments, and more to manage – it can be hard for business owners to keep track of their financial situation without a comprehensive plan in place. Additionally, they may not have the time or resources necessary to create an effective budget that will help them reach their long-term goals
If you’re planning for Retirement
When planning for retirement in Letterkenny, Co Donegal, Ireland, there are a number of considerations that must be addressed. For example, pension planning is of particular importance as the state pension alone may not be enough to cover your needs. Additionally, the amount of money that can be saved via tax reliefs and allowances is limited by age and income limits. This means that those who have not adequately planned for retirement in their younger years may find themselves in a difficult financial position later on.
Creating achievable and realistic financial resolutions is essential to ensure you are taking the necessary steps toward long-term success. 2023 (i.e now) is the perfect time for people of all ages and financial situations to get their finances in order. From families looking to build a little financial security to business owners seeking more opportunities to invest, and those who are approaching retirement hoping to make the most of their savings – there is something in it for everyone. This is especially true for people living in Letterkenny, Co Donegal, Ireland, where we have seen the rate of inflation rise as high as 10% in 2022.
With this in mind, here are some Financial New Year Resolutions that should apply to anyone wanting to get wise with their money this year:
1: Create a budget:
Knowing exactly how much you are earning and spending each month is essential when it comes to financial advice. Many people have difficulty accounting for all of their outgoing expenses, so creating a detailed budget is beneficial.
2: Prioritise saving:
Once you have established exactly how much is going out each month, it’s important that you also assess how much can be put towards savings each month too. This depends largely on individual circumstances, but having an emergency fund can prove invaluable down the line if needed.
3: Invest wisely (don’t DIY it!):
As part of the budgeting process, we would recommend that savers look into methods that enable them to invest wisely, whether this means long-term investments or smaller high-yield options like stocks or ETFs (exchange-traded funds). By seeking professional advice and doing research ahead of time, there are plenty of lucrative opportunities available if you choose to go down this route. Whatever you do, don’t try it yourself. For every bitcoin success story, you have heard we can also relate to thousands of losses and broken hearts.
4: Reassess insurance policies & investments annually:
A key step towards sound financial planning involves assessing any relevant insurance policies or investments regularly, at least annually, as markets often change unexpectedly over time. Regularly reassessing these plans will ensure that one isn’t caught off guard by unexpected changes in finances due to unforeseen events or changes in policy terms.
5: A good credit history:
Your credit history is an often-underrated aspect of personal finance management; however, your credit history provides potential lenders with an indication as to how likely you are to pay back any loans taken out.
Therefore, anyone looking after their own finances should ensure loan repayments are made on time and as per agreed with the lender. If you come under financial difficulty you should always speak with the lender and agree with an alternative arrangement. Thus, protecting your credit history.
6: Review your pension (or start one ASAP):
For most of us in Letterkenny & Co Donegal, Ireland, our pension is often one of the most significant assets we have when it comes to retirement planning. As such, it’s important to take advantage of any employer contributions and tax reliefs available – as well as saving as much as possible into the pot over time. If you haven’t already set up a pension plan then it’s essential to do so now, as the sooner you start saving for retirement the better.
2023 is a great time for you to think about practical resolutions concerning your personal finances this New Year. Whether it involves setting budgets, prioritising saving goals, or simply fixing up your credit history throughout the year – by following simple yet effective steps like these you can sleep easy knowing that responsible financial planning is being looked after properly from now into 2024 too!
Call us today and arrange an introductory chat, we have 30+ years of experience advising people from all backgrounds in Letterkenny & Co Donegal, Ireland, from setting budgets and investment strategies to Life Cover & Pension reviews and more.
If you have questions on Investment or need Advice on Setting Smart Financial Resolutions in 2023
Talk to us now and make an appointment with one of our Letterkenny team of QFAs. We are here to help with your Financial Planning Concerns. Ask us questions on Retirement & Pension, Life Insurance & Protection, Mortgages, and Investment Advice. Get in touch here or give us a call at 074 91 03938.
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