With 2014 expected to be the year the UK staggers back to its feet financially, experts are predicting growth rates to double when compared with the previous four years.
When we incorporate falling inflationary rates into the mix, the squeeze on consumers will begin to loosen its grip, allowing Brits to open their wallets and up their spending power.
But for those looking to squirrel cash away for a rainy day, there may never have been a better time.
Whether it’s for well-deserved holiday, much needed home improvements or ensuring your family are protected should you pass away unexpectedly or be unable to work, securing a healthy financial future is actually much easier than you may think.
Read on to explore our five simple steps to monetary peace of mind.
Get Set for Death
It may seem like a punch in the chest to begin preparing for a healthy financial future by talking about death, but you couldn’t be more wrong. By investing time and effort into researching the costs of funeral plans, it offers unrivalled peace of mind and ensures, should the worst happen, your family are protected from rising funeral costs.
Luke has a healthy respect for finances by Matt, Marie, Luke and Finn, on Flickr. This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.
Set Yourself a Budget
Setting aside cash requires you to have a tight grip on your finances – which involves a strict audit of your current income and expenditure. By making a list of where your cash is being frittered away, it makes it far easier to understand areas where you can make cuts (that expensive hair salon, for example) in order to invest the cash you’ve saved wisely.
Annihilate Credit Card Debt
Considering their often extortionate interest rates, credit cards can be one of the hardest debts to wipe out. To avoid paying over the odds for too long, then, make a plan to wipe out your plastic debt as quickly as possible. Although their convenience can’t be denied, try to only make purchases if you have the hard currency to hand.
Organisation is Key
Far from being OCD, organising your important documents into one folder will make future financial planning immeasurably easier. Include your bank, pension and insurance details, along with other policies you may have in place. Not only will this system save time, documents can simply be added or removed over the years.
Emergency Cash is Vital
Experts advise that an emergency cash fund should total approximately three times your monthly outgoings. This should cover things like your mortgage/rent, insurance, mobile phone bills, etc. If you’re married or have children, the figure rises to six times your monthly expenses. By keeping cash aside for lean periods, it avoids credit card purchases or taking on more debt to plug the gaps.
