Simple tips to keep your finances on track in 2022 – ‘A tough year ahead’

0

Express.co.uk spoke exclusively with Becky O’Connor, head of pensions and savings at interactive investor, and she offered tips on how best to do this. For people with extra savings from lockdown, she suggests keeping these handy and using it for emergencies.

She said: “There could be a tough year ahead, with inflation, tax and the cost of energy all on the rise.

“You may find you need to dip into any spare savings you have.”

From April, it is predicted that usual living costs will rise to about 10 percent once the energy cap has been removed and the National Insurance hike begins.

Ms O’Connor suggested that people may need to start budgeting.

READ MORE:  ‘Glad I didn’t win’: Fired The Apprentice candidate who is now set to make millions

She said: “If this is going to be unaffordable to you, you may need to adjust your budget and cut back.

“Start with any frivolous spends, such as subscriptions, that may have crept in when you were feeling more flush.”

Additionally, to deal with the rising cost of groceries, many people have benefited from “no meat Mondays” or cutting back on meat a few times a week.

People can get into batch cooking and freezing which can save energy as well as time, she added.

DON’T MISS

With the rate of inflation in the UK has rising to 5.1 percent – its highest rate in a decade, people are urged to consider “diverting their savings”.

She continued: “Review your savings rates and how much you have in savings.

“If you don’t need some of this in the short term, consider diverting some of your savings to the stock market, through a stocks and shares ISA, where it stands a better chance of beating the currently high inflation rate over the long term.

“Check in on the returns from your pension pot. Is the growth beating inflation?

“Could you invest a little more in equities to give a bit more potential for higher returns this year?”

Moreover, before borrowing money, Britons should “think twice”.

Taking on debt using buy now, pay later, or credit cards, store cards or personal loans need to be well thought through to stop any negative outcomes.

She said: “Work out what is really important to you this year, and if your temptations don’t fall into this category, don’t buy them.

“If you’ve managed without something, you can probably continue to manage without it.

“Check in with your spending and savings efforts every week if you can and consider small, inexpensive rewards if you’ve done especially well at saving one week.”

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TechAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More