James McGregor – Focus Mag (original) (raw)

Making financial decisions is often difficult yet necessary. Many people have various issues with their finances, whether they struggle to manage their funds daily or want to save up for a big goal. Financial health is the general state of your capital and your relationship with money. To be financially healthy, you do not necessarily need to earn tons of money. It is all about how you manage your finances and spend funds on different objectives. In this article, you will find convenient and accessible ways of improving your financial health.

About Financial Health

What does it mean to be financially healthy? This means controlling your money instead of letting the money control you. Living without debts, earning enough for living a comfortable life, and having enough money left to save up for everything you need, from small purchases to buying a house, all of this demonstrates your financial health.

Planning is crucial for being financially healthy. It is impossible to deal with your money efficiently without having a plan. Making impulsive purchases once in a while is normal, although it is essential to have a general financial plan and stick to it. You should always track your income and expenses, as well as save up in an organized way. Here are some of the main areas you need to focus on for your financial health.

Paying off All Debts

It is definitely important to avoid getting into debt and pay off any existing debts quickly to improve your financial health. Debt is one of the biggest regular expenses that drain your money. It becomes nearly impossible to save up money when you have an unpaid debt. To earn more than you spend and be able to save funds for a variety of goals, it is important to concentrate on eliminating debts first. If you have one debt, focus on paying it off as soon as possible and start saving up money afterward. With multiple debts, you can either work on one of them until you pay it off completely before moving to the next one or gradually pay all of them off.

Gaining Extra Money

When it seems that there is not enough money for something, people often think that they have to cut back their expenses and put down various restrictions. While cutting unnecessary expenses is great, it is also recommended to look for sources of additional money. Not many people realize that you can actually make passive income quite easily today. One of the common solutions is to invest money online. An accessible option for beginner investors is joining an alternative investment fund that offer a fully automate investments. One such platform is Quanloop, and it is possible to start investing there even if you have one euro to spare. If you were searching for where to invest money online, try an alternative investment fund.

Cut Unnecessary Expenses

People make tons of small and often unnecessary purchases without even realizing it. Whenever you are making a small purchase, you do not feel like this is bad as you are only spending a small sum of money. However, if you put together all your expenses throughout the month and even a year, you will see how much you are spending excessively.

Some people think that to lower expenses, it is necessary to restrict yourself and avoid buying treats and nice things. This is not the case. However, you need to monitor your daily expenses and see if there are truly unnecessary spendings. As soon as you start writing down all your spendings, you will see that there are definitely things that you can live without.

Saving Funds

Saving up is crucial for everyone’s financial health. Create a list of all your money-related objectives to see what you are working with. Set a deadline for each goal and see how much money you need. This way, you will be able to calculate how much you need to save up every month. Here are some of the most common financial objectives:

Retirement support

College

Housing

Wedding

Traveling, etc.

Everyone has their own goals. It is important to determine your personal objectives and stick to them. The sooner you start saving up, the quicker you will achieve all your goals.

Choosing a financial advisor to manage your finances can be challenging when you’re not an expert in money matters. Moreover, it’s almost impossible to know every area well enough because they’re so specialised and different from each other. It is essential to choose a financial advisor that you can trust. However, with so many options available, it can be challenging to know where to start. If you’re looking for a financial planning advisor to work with, here are eight reasons why you should work with one.

  1. Protect your family’s financial future

Your financial planner will work with you to develop a comprehensive plan that considers your current situation, financial goals and risk tolerance. If you reside in South West England, sound financial planning advice in Bristol crafted by a seasoned professional will help you achieve your financial goals and protect your family’s future.

  1. Simplify your financial life

A chartered financial planner can help you take a big-picture view of your financial life and make recommendations that can make it simpler. This might include helping you consolidate accounts, automating bill payments or recommending ways to reduce expenses.

  1. Save money on taxes

A financial planner can help you take advantage of tax-saving opportunities. For example, if you’re a higher-rate taxpayer, your financial planner can recommend investments that offer tax breaks, such as ISAs and pension contributions.

  1. Help plan your spending and saving

If you’re not sure how much you should be spending and saving each month, a chartered financial planner can help. They can review your income and expenditure to see where your money is going and recommend how much you should set aside each month.

  1. Get an objective view of financial decisions

It can be challenging to be objective about financial decisions, especially if they involve emotional issues such as whether to sell a family home. A chartered financial planner can help you see the pros and cons of different options so you can make an informed decision.

  1. Provide peace of mind

Working with a financial planner can give you peace of mind that your financial affairs are in order. This is especially important if you have complex financial matters or are going through a life-changing event, such as getting married or having a baby.

  1. Keep you on track

A financial planner can help you stay on track with your financial goals by reviewing your progress and recommending changes to your plan. They can also help you stay disciplined with your spending and saving by providing regular feedback.

  1. Prepare you for retirement

If you’re approaching retirement, a financial planner can help you plan your finances so you would have enough money to support yourself. They can also help you decide when to start taking your pension and how to invest it, so it lasts as long as possible.

Final thoughts

Working with a chartered financial planner is a smart move if you’re looking for financial planning advice. They can provide the guidance and support you need to make sound financial decisions and achieve your financial goals.

Pension is one topic most people get uncomfortable with when discussing their retirement plans. Moreover, most people are more confident in choosing general insurance products and savings over pension products. Are you struggling to decide whether or not you need a financial adviser for your pension? Here’s a spoiler, the question is not really “if” you need one but “when.”

It is why many are hiring financial advisers to help with their pensions. To help you decide when to hire a financial adviser, here are some things you should know.

Why do you need a financial adviser for your pension?

You need to hire a professional to get pension advice Kent especially for this living in Kent for local situations when it is required by law. There are also cases when it is up to you to ask a financial adviser for help.

To explain it better, here are some cases when hiring a financial adviser for pension is required by law:

You are going to cash in your pension

The law requires people planning to cash in a definite benefit pension to seek financial advice. It is regardless of the amount in your plan. Because the guaranteed income provided by such final salary schemes is much valued, cashing in this form of pension is probably not wise. You should seek financial advice when you are planning to cash over a £30,000 defined contribution pension.

You are transferring your pension

A financial adviser is also necessary when you’re about to transfer a defined benefit pension to a defined contribution pension more than £30,000. It is mandated by the Financial Conduct Authority to prevent people from making wrong financial decisions in risky and complex areas. The financial adviser will handle the liability and risk of the pension transfer for you.

Should I ask for financial advice for managing my pension?

It’s up to you to seek financial advice or go DIY in managing your pension. However, you might need to ask a financial expert for advice if you choose a self-invested personal pension. A financial adviser can help you grow your pension faster and choose the best funds with excellent security. They can do the following:

Do you need a financial adviser to access regular pension income?

Consulting a financial adviser when accessing your pension is not a legal requirement. However, it might be a critical period wherein you must seek financial advice from a professional. You have to be prudent at this point in your life because your decisions can affect you for the succeeding 20 to 30 years.

Conclusion

To sum it up, there are a lot of advantages to hiring a financial adviser for your pension. Whether it is legally required or your personal choice to hire one, it is always wise to seek financial advice from a professional.

A reliable accountant can help your business grow and save time, while a bad-performing one could cost you money. That’s why choosing the right one is a crucial decision you have to make. However, with so many candidates to choose from, it is not going to be an easy task. Thus, it helps to ask some questions or consider some essential factors when selecting an accountant.

Narrow down your business’s needs

Decide on the services you want from an accountant by narrowing down your business needs. For example, do you want the accountant to do all the accounting services and payroll management? Do you need assistance with your taxes, tracking your finances or with your daily activities?

Do your research

Are you looking to outsource accounting services from firms with London-based accountants or hire accountants to be a permanent part of your team? Remember to check their reviews, know their pricing, or compare a couple of companies or candidates.

Ask for recommendations

Your fellow business owners in the area may recommend good accountants to help you with your finances. Whether you need a certified or licensed one or a bookkeeper, it pays to get recommendations. This way, you’ll know how that person works or what level of experience he has.

Set up an appointment

Meet with the candidate to communicate what you need and how he can help you. Know what their level of experience is with your nature of business. Ask about the services that the accounting firm or candidate offers. Most of them offer tax and auditing work, so ask if the service includes bookkeeping, estate planning, management consulting, or whatever is crucial for your industry.

Make sure you’re a good match

You need to be compatible with your accountant, who will act as your business partner. If you’re dealing with an accounting firm, meet with the accountant who will be handling your business. Ask how they take situations that may be relevant to you. Listen carefully and decide if that is how you want your accountant to handle your affairs. It does not necessarily mean that you want your accountant to have the same approach as you have. What matters is that you are comfortable with how he does things.

Determine the billing structure

Ask about the fees upfront. Most firms charge by the hour, while others charge per service or a monthly retainer. Some have additional charges for specialized tasks.

Conclusion

It is beneficial to have a checklist or guide when choosing an accountant to cover the most critical steps of the selection process. Once you have made your choice, write out the agreement terms in an engagement letter. It should include the details of statements and returns to be prepared and the fees. This ensures you have the same expectations. Do your part by noting down, for example, the details of all your checks or receipts. The better you do this, the less time your accountant has to work.

There are lots of people that will borrow money in order to do things. This means that they will take out a loan of some sort so that they can buy items, it might be something large like a house or car or to cover an emergency such as replacing a white good. There are lots of reasons for borrowing, lots of types of loans and many different lenders. Whatever your financial situation, you may wonder whether borrowing is the right thing for you to do. It is good to think it through and then decide what types of loans might be available.

Borrowing on Benefits – pros and cons.

There are lots of different types of benefits and many people on benefits are also working, it might be that they have an income top-up or they have children and get money for them. There are some people though, who are on benefits and do not work. Either way, they will both have a regular income and this will mean that there is a possibility that they will be able to borrow money. There are advantages and disadvantages to all types of borrowing and when you are on benefits there are things that you will need to consider in addition to the factors those not on benefits will need to think about.

In addition to the above, you will need to make sure that you will be able to repay the loan. Every loan is set up slightly differently but you will have to repay the loan plus interest and possibly charges and you will either have to repay that all at once on a particular date or in instalments. It is really important to make sure that you are aware of the repayment terms and that you work out whether you will be able to afford those repayments. It is important to be aware of the income that you have and what you normally spend it on and then you will be able to work out whether you will have anything left for a loan repayment and how much you will be able to afford. It is also well worth considering the fact that interest rates are likely to rise in the future. This will mean that your loan repayments could go up, particularly if you are on a variable rate, which can be changed at any time by your lender. So think about whether you will be able to afford this increase and if not, whether there might be ab area where you can cut back, that will enable you to free up some money to cover this.

The advantages of borrowing are that you will be able to have a sum of money available to you, that you will be able to spend on something that you need or want. It can be very useful to be able to replace broken things or enjoy new things. It is something that many people do and having new things can be very useful as well as lots of fun. If you are on a limited income, it could be the only way that you will be able to afford expensive things as borrowing will allow you to be able to spread the repayments and make it easier for you to be able to afford.

What Loans will be available?

You may think that if you are on benefits there will be no loans available to you. However, lenders like to lend out money as they profit from it and this means that it can be relatively easy to borrow. However, the more money you want the harder it will get. It can be relatively easy to get an overdraft of a few hundred pounds, but if you want a mortgage on a house, you will find it more difficult to secure the mortgage that you will need.

Payday Loan

The most common loans that people choose because they are easy to arrange are payday loans. These tend to be available to everyone, regardless of their income amount and source and that means that even if you have an income made up completely of benefits, you will be able to borrow. However, it is worth knowing that these loans are very expensive. This is because the lenders are taking on a big risk when they lend as they are happy to lend to anyone. This means the people borrowing may not repay the loan and therefore they may lose out. They charge lots of money to everyone, so that they can get enough to cover those that do not pay. It is therefore good to look at the costs of the loans that you are considering too. Think about whether you think the cost will really be worth it. This will very much depend on what you need to loan for and how much you are willing to pay for it. If you have to replace a broken fridge then you may be happy to use this type of loan and pay the extra costs, so that you can keep food cool, however, if you are using the money for a holiday, you may feel it is better to wait and save up rather than pay the extra loan costs as well.

Guarantor Loan

You may find that there will be other loans available to consider as well. You might be able to get a guarantor loan. This is where you nominate someone, who has a good credit record, who will repay the loan for you, if you struggle. These loans tend to be for thousands of pounds and so you will be able to use them for significant purchases. It does depend on you being able to find someone that will be able to repay the loan and will be willing to sign the paperwork etc. You will also find that these are still quite costly loans and so you need to be fully aware of how much you will have to pay and think about whether you are happy to pay out that amount of money.

Logbook Loan

This is a type of loan where you use your car as collateral. It means that if you do not manage the loan repayments then your car will be taken and sold to repay what you owe. This could be a very risky loan to have if you rely on your car to drive you to work, take children to school or visit friends and family. You will therefore need to make sure that you are completely confident that you will be able to repay the loan in full and on time so that you do not lose your vehicle.

Conventional Loans

You may find that you will still be able to use conventional loans such as personal loans, overdrafts, credit cards etc. It is well worth having a chat to your bank about it and seeing what they will be willing to do to help you. These types of loans tend to be cheaper and less risky and so they are the place that you should turn to first. You will still need to be aware of the costs and decide whether you think that they are worth it. You will also need to make sure that you are aware of how much you will need to repay and whether you will be able to afford this amount. There will still be consequences if you miss repayments, such as charges and even court cases and it will appear on your credit report which means that it will be harder for you to get other loans as a result. The costs may not be as high compared with payday, guarantor and logbook loans, but there are still costs and you will need to pay them.

Managing Without a Loan

It is a good idea to do your best to manage without a loan if you can. There will always be risks and cost with any sort of loan and these are best avoided if you can. If possible, it is wise to try to save a little money each month. You will then be able to use this if you need to buy something a bit extra. This can be tricky, but no more difficult than finding the money for loan repayments and it is much better to save and have the money there when you need it, rather than suddenly finding you need money and not knowing what to do to get it. Loans can be useful in emergencies and in most cases, this is what they should be limited to. If you want to buy a home, that is an exception where a mortgage can be very useful, but the benefits of not paying any rent into your later life and retirement, far outweigh the costs of the loan. Most loans do not offer this sort of advantage.

It is therefore worth thinking hard before getting a loan and deciding whether it really is worthwhile for you. Consider the advantages and disadvantages. Think about what you will buy and the cost of the loan as well as the risks and whether it really will be worth it for you. Make sure that you will have enough money to repay the loan and consider what you might be able to do, if you cannot repay it. Once you have all of this information, you will be able to make an informed decision as to whether you think the loan is a good idea. It can be an emotional decision to make and therefore worth talking over with other people who may see things slightly differently to you and will therefore help you make the right decision.