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At this time of year, many people will be asking themselves the questions:
1. How did last years resolutions concerning personal finance go?
2. Were they broken by February, leaving 2008 as a financial failure?
3. Was the summer holiday paid for on credit?
4. How did I pay for Christmas?
5. When do I get the first credit card bill of the year?
December is a time to look back on the year that has gone, but January is the time to look forward to the year ahead and start reviewing and planning future finances.
By looking at last years bank and card statements and analysing what went in and out of various accounts each month, it is easy to identify problem areas and begin to plan to curb unnecessary expenditure.
Organising records and calculating predicted monthly outlays, allows people to determine how much they can spend each month on enjoying themselves whilst still making savings.
Examining ways of saving money will soon get monthly balances heading in the right direction. One way of doing this if possible, is to swap outstanding credit card balances to 0% deals.
Mortgage holders and people who have protection policies can look in to these to scrutinize how suitable they currently are to them. It is advisable to do this with the help of an Independent Financial Adviser (IFA).
Those who have savings and are clear of debt should be making sure their money is working even harder for them next year. Try to ensure there is a surplus of at least three months net salary saved in an instant access account in case there is an unexpected need to pay out for something.
Savers should become more tax efficient through looking at longer-term savings plans, and remembering that when starting a pension, the earlier it starts, the sooner and easier retirement could eventually be.
One thing to remember; people who set themselves financial goals by targeting where they would like to be a year from now, are far more productive with their economic planning.
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