We have been doing lots of client annual planning meetings recently and here are 7 things that we have noticed where clients could be doing more for their money . . .
- House insurance – mine is with AXA and is only costing me £163 for this year for buildings and contents. We don’t have anything special covered like bikes or jewellery. We have seen some massive premiums from clients, so make sure you shop around and only cover what you would replace if it was lost.
- Consider interest free credit for purchases, even if you have the money to pay for it straight away. Your money is therefore invested for longer so can potentially grow more, and especially with the current low markets you might be better not taking it out now but leaving it until later. It could also improve your credit rating by having this debt that you are regularly paying off.
- Don’t use cash ISAs as the returns are so poor and therefore the tax saving is too. If you have the risk appetite then invest in stocks and shares ISAs instead as the growth potential is a lot higher. Use bank accounts for cash.
- Invest when the markets have fallen – like now – as you get more investment units for your money, so when the markets recover and go back up, your newly invested money will go up too.
- On the other side, do not sell your investments when the markets fall as you are crystallising your losses. If you get worried, stop looking!!
- Stop buying stuff to fill your house. Buy experiences that don’t need new shelves to go on or to be cleaned. Invest in memories.
- Install water butts to water your garden. They are inexpensive to install and the water is free – much better for the environment and your water bill. We also have a jug by our kitchen sink to collect the water when running the tap for hot water, or saving the water from our morning poached eggs as our delphinium loves that water as do the pak choi in our vegetable trug in the front garden.
Do you have any other tips to add to our next list?
