January Savings Tips
If you've crawling into January feeling like you've overindulged in every way this Christmas, it's time to shake off your New Year blues and give your finances a serious work out.
Firstly gather up your bank statements and credit card bills and work out exactly how much you owe and realistically how long it will take you to pay off. Shop around for a credit card with zero percent balance transfer and aim to pay off yours debts within the interest free period. Make sure you know what the rate is after the zero per cent period, and if you don't think you'll be able to clear your debts in time, choose a card with a low APR.
If you're a home owner, remortgaging your property might be a good way of reducing your monthly outgoings and freeing up some equity. Competition between mortgage lenders is fierce, which means new deals are constantly coming on the market to tempt you away from your current lender. Find out what interest rate you're paying and see if you can find somewhere offering lower monthly payments. If you haven't got much spare cash, make sure you have a fixed rate mortgage so you know exactly what your outgoings are going to be every month and you can budget. Teachers Building Society (TBS) offers both fixed rate and variable mortgages at a very competitive rate which is designed specially for teachers.
Review your regular monthly outgoings and get rid of any unnecessary expenses. It might seem virtuous signing up for the gym, but according to the Fitness Industry Association around 30% of members who sign up at New Year won't even go once a week by February. It's estimated that up to £200m is wasted each year in lapsed or unused membership fees.
Make sure you use your tax allowances fully such as investing in an ISA. These are tax-free savings introduced by the Government to encourage people to save their money. A Mini Cash ISA is the most popular type and appeals to savers who want to hold their money in an account that pays interest gross. TBS enables teachers to open an easy access Mini Cash ISA for just £100 at a current variable interest rate of 6% AER. The good news is that from April this year, the limit for annual investments is being raised from £3000 to £3600 for each tax year. If you have any money in excess of this amount that you'd like to invest, why not get in touch with TBS who offer a range of high interest savings accounts.
Seven ways to financial heaven:
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