To look after yourself, first look after your finances

For now, let’s focus on the ‘now’ and the ‘how.’

Clearing debts

With high interest rates and the rising cost of living, clearing debts is a good place to start. If you have credit cards, store cards or overdrafts, consider paying them off or reducing them as much as possible.

If you have debts, ensure you always make at least the minimum payment each month and target the ones with the highest interest rate first. If it is going to take time to repay your debts, consider moving to an interest free credit card.

If you have debts, ensure you always make at least the minimum payment each month and target the ones with the highest interest rate first

Making the most of your mortgage

Make sure you are on the best mortgage deal for your circumstances. Lloyd & Whyte’s mortgage advisers can help you with finding your future or reviewing your current mortgage. They are part of an independent financial adviser team, and are not tied into a specific provider, which means they can search a large panel of lenders and help find a mortgage to suit you.

Protecting your income in the event of illness

You never know what is around the corner. Accidents and illness do happen, and we are not as invincible as we think we are.

Being unable to work due to an accident or illness is one of the largest risks you will probably face. Income protection can pay up to 65% of your salary until you return to work. Compare this to the amount the state pays – £99.35 per week for up to 28 weeks – and you might want to consider taking out income protection as a ‘safety net.’

The benefits of income protection include:

• Cover up to 65% of gross earnings paid tax free income after a waiting period
• Benefits that can be paid up until retirement age
• Pay-out on incapacity, based on your income over the previous 12 months
• Payments until you return to work.

Spending and saving

Are you a ‘spender’ or a ‘saver’? If you are already saving as part of your financial wellbeing – well done. If you err on the side of spending, Lloyd & Whyte can help.

To get you started, consider creating a budget. To do this, examine your ‘discretionary expenditure’ versus your ‘fixed expenditure.’ Remember to create an easily accessible cash ‘buffer’ for unexpected expenses or emergency costs. We suggest three to six months of your salary.

When you have a grasp on the ins and outs of your income and expenditure, you can work towards making your money work for you by starting to build up a nest egg for the important things in life. Our advisers can assist in making investment recommendations if you feel this would be of value. If investing seems to be a process which is not applicable to you, reconsider. You can start on a smaller scale and build up your portfolio over time.

Pensions

You often need to work for a long time until you can claim your State Pension, so the sooner you start thinking about organising your pension, the more peace of mind you could have.

Saving your money in the right places means your wealth works harder for you, rather than you work harder for your wealth.

Visualising your retirement

How do you want your retirement to look? If you haven’t considered planning for your retirement, now could be the time to start. Whether you intend to retire early, work part-time when you reach a certain age, or continue your career to later on in life, organising your savings, investments and pension(s) can make the difference between enjoying the longest holiday of your life to potentially struggling financially.

If you haven’t considered planning for your retirement, now could be the time to start

Practising ‘long sighted’ planning around your financial wellbeing can be more beneficial than a short-sighted approach. Our independent financial advisers are experts in helping with investment strategies and pensions, helping you potentially make the most of your hard-earned money.

Lloyd & Whyte practices a holistic strategy around clients’ financial wellbeing, which means every aspect of your finances, from paying off debts and managing your income and expenditure, to saving, investing and planning your pension, plays a part in your finances working for you.

Lloyd & Whyte is an AOP affinity partner. Talk to Lloyd & Whyte’s independent financial advisers – book an appointment now or call 01823 250750.


Lloyd & Whyte (Financial Services) Ltd are authorised and regulated by the Financial Conduct Authority. Registered in England No. 02092560. Registered Office: Affinity House, Bindon Road, Taunton, Somerset, TA2 6AA. It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding of taxation and can be subject to change in future. It does not provide individual tailored investment advice and is for guidance only. We cannot assume legal liability for any errors or omissions it might contain. Your home may be repossessed if you do not keep up repayments on your mortgage. The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get back the full amount you invested.