1 Pay off your debts. Those credit cards & personal loans are very expensive. The cost of borrowing money is much more than you get from a savings account.
2 Use your ISA allowances. Nobody likes paying tax, why pay it on your savings? Don't forget about the Investment ISA too.
3 Be careful who you take advice from. Ask the person, "Are you Independent & Impartial?" "What are your qualifications, the bare minimum or something higher?"
4 Insure your most valuable asset. People insure their cat, dog and mobile phone and forget about the most important thing....themselves. What happens if you lose your job or cannot work because of illness?
5 Save in a pension. They are simply long term savings plans with tax advantages. Why pay out money in income Tax & National Insurance? A pension allows you to keep & invest that money.
6 Over pay your mortgage. Most lenders allow you to pay off up to 10% of the mortgage amount each year. It saves you money in interest and shortens the time you have your biggest debt.
7 Avoid anything which seems too good to be true eg rates from Icelandic banks or current accounts which pay you 6% and levy hefty monthly charges.
8 Do not get obsessed with property. A large part of people's wealth in tied up in their house, buying more puts all your eggs in one basket. Consider alternative forms of investment
9 Transfer assets to a partner. Often one partner will pay less tax or have unused allowances.
10 Spend some money, you will have some fun & it will help the economy
As featured in the Swindon Advertiser 23 December 2009.
