For several reasons, inflation rose to 9.2% in 2022*. That means that the average cost of living increased by this amount compared to 2021. The good news is that inflation has slowed down since 2023*. Of course we don’t know for a fact what the future will look like, but let’s face it with a little bit of optimism. Looking at our finances and preparing for the future is guaranteed to make us feel safer and more confident about what’s ahead.
A budget helps look at what’s coming in and what’s going out, to put you firmly in control of your money. According to our 50/15/5 rule of thumbs:
An emergency fund is a good buffer if you’re hit by an unexpected bill. Try and have at least 3-6 months’ worth of income tucked away (remember the 5% budgeting tip).
Most of us have home and car insurance, but what about life insurance, income protection and critical illness cover?
More tips about protecting yourself and your loved onesYou should review your borrowing regularly to make sure it’s still affordable. We shop around when around insurance policies are due for renewal – why shouldn’t we also shop around for better loan terms?
Short-term loans often attract higher interest rates so if you’re able to pay off a more expensive loan sooner, you’ll save money in the long term.
Find out more about managing your debtsIt’s never too early (or too late) to start planning for your future. The sooner you start, the more you can save – but even starting a little later in life and saving small amounts regularly can make a big difference. Just an extra 1% of your salary could boost your retirement savings.
Take a look at ‘the power of small amounts’ and use the calculator to see how easy it could be to give your retirement savings a boost.
* Source: Organisation for Economic Co-operation and Development (OECD) - Inflation forecast
Important information - this is for information purposes only and the views contained are not to be taken as advice or a recommendation for any product, service or course of action. You should regularly reassess the suitability of your investments to ensure they continue to meet your attitude to risk and investment goals.
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