We’re far enough into 2016 now for the resolution-breaking weeks to be behind us. New Year’s Eve is just a distant memory and it’s time to start seriously looking at the year ahead. For many of us, it’s our finances that could do with some serious attention this year – sorting out money matters is at the top of the agenda for many people. 2016 is a great year to start winning with your cash – here’s why (and how).
You can start saving to buy a home
In December the government introduced the new Help to Buy ISA, a scheme designed to get anyone looking to plant a foot on the housing ladder to start saving. You also get the added boost of a 25% top up from the government. So, for every £100 that you put into the ISA the government will add another £25 – plus the ISA is a tax free form of savings. You can deposit a lump sum of up to £1,200 into the ISA in the first month and then £200 a month after that with the maximum government bonus available being £3,000. The ISA is available per person, not per household so if there’s two of you buying together the potential government bonus is £6,000.
Technology is making budgeting easier
It has never been a better time to get help with your budgeting, there are simply no more excuses for not setting, and sticking to, a monthly plan. There are budgeting apps available for your smart phone, as well as numerous guides online to help you work out how to stay within your means. Your friendly local bank also offers a range of tools to help keep your finances in check, from budget planners through to savings calculators that will help you work out how to meet savings goals.
Interest rates are not going up (yet)
There’s been talk for some time that an interest rate rise is imminent but this month the governor of the Bank of England said that there was no need for any rate increase as the UK economy has slowed and growth globally is weak. This isn’t great news in terms of the rates of interest you’ll receive on savings but for anyone with a mortgage – or any other type of loan or debt with an interest rate linked to the Bank of England Base Rate, it’s welcome news indeed.
You can automate yourself into good habits
Many of our issues with finances tend to come from ‘human error.’ That could be simply forgetting to pay a bill on time or failing to put anything aside for your savings and then having nothing in the pot at the end of the year. With direct debits and standing orders, as well as the availability of different savings accounts, you can set up automatic payments that will ensure your money is being properly managed without you going anywhere near it. Agreeing to direct debits to pay your bills often means receiving a discount in return and you’ll have the peace of mind of knowing that you’re not going to see any red letters land on the doormat. Some banks now offer cash back if you pay your household bills from their accounts by direct debit – for example Natwest offers 3%.
Credit reports are free
Do you know what your credit score is? Well if you’re serious about managing your finances then you should. You can see your credit score for free via Experian or Equifax – this will show you how creditworthy you are, whether there are any issues that need to be dealt with to correct your credit record now, and will also give you good perspective on whether you’re living with a good balance of debt.
Switching is simple
If you’re stuck with a bad loan or credit card then it’s so much easier now to make the switch to an arrangement that better suits your finances and your income arrangements. 0% credit cards are an easy way to give yourself more space to start reducing debts – you won’t pay any interest on a balance you transfer for a set period of time and you can use that cash to start reducing what you owe. If you’re finding yourself stuck with a loan you can’t manage or a debt you want to handle differently then it’s very simple to move to another finance option, whether that’s a payday loan or a revolving credit facility, to help you get your finances back in order.
Alex Hartley is a keen advocate of improving personal finance skills. She's worked at Solution Loans since 2014 and written hundreds of articles about how people can manage their money better. Her interest in personal finance goes way back to...Read about Alex Hartley
We use cookies to make your experience on our site even better. They also help us to understand how you use our site. By clicking 'Accept All' you're agreeing to our use of cookies. You can change your cookie preferences by choosing 'Manage Settings' and if you want to know more, you can read our cookie policy.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.