ISAs | 15th November 2018 | 204 reads
Which ISA should you choose?
Choosing an Individual Savings Account (ISA) used to be simple. There was either a cash...Read more
Savings | 26th April 2018
Most of us are clear on what we want, but perhaps you haven’t had the chance to sit down and think about it yet. Either way, maybe your dream is to have a three-storey terrace or a fancy sports car. Perhaps you want to start your own business or sell all your belongings and live like a nomad. While we know what we want, we aren’t as sure how we are going to get these things. It is time for us to start taking control of our finances and putting our best foot forward towards our big goals. But, where do you start?
This is the first step to knowing where you are on the road to reaching your goals. A monthly budget allows you to highlight areas where you may be overspending, or whether you need to find ways to increase your income. You should do this each month, and keep track, so you know precisely where each pound is going.
Keeping a monthly budget is the first step. However, now and then there can be pesky unforeseen expenditures that affect your budget. Say your car breaks down, a pipe helpfully decides to burst. It doesn’t all have to be doom and gloom. Perhaps your friends decide to go to a fancy restaurant. These will upset the status quo of your budget, and you’ll need to be able to afford it. Having a bit of money tucked away in case something happens is vital. One of the best ways to save is by setting up an ISA. This will allow you to save tax-free and get higher interest rates than regular savings accounts. Opting for a flexible Cash ISA will allow you to save, and if you do need to access your money, you can do without a hefty penalty. Use our comparison tool to compare and find the best rate to suit your circumstances.
If you are in debt, it can feel like there’s a constant cloud over your head. People manage to get out of debt all the time, but there are planning and discipline involved. It will be easier for some, on higher incomes, but that shouldn’t stop you making progress. If possible, set yourself a target of how much debt you want to get out of this year, one that is attainable but requires you to be frugal. Then decide how much you can set aside each month to go towards your debt, and follow a strict payment plan. You’ll be surprised how quick your progress will be. One thing is certain. If you are trying to reduce your debt, you should do everything possible to make sure you don’t acquire more.
If you are budgeting, saving, and being as frugal as possible, but still finding you’re struggling with your goals, you may need to start thinking about ways to increase your income. If you love your job and see yourself working there for many years to come, you can still improve your income. Perhaps ask for a raise, or go after a promotion, or become your own boss in the same industry. This could help. Alternatively, if you don’t like where your career is heading, there’s no better time than the present to make the necessary changes to find a job that will support your lifestyle.
Saving in an ISA is one of the best investments you can make for your future. With tax-free savings and higher returns than regular savings accounts, ISAs can help you with your big goals whether it’s buying a house or saving for your retirement.