2020 could still be your year to build stronger finances FREE

This year is probably not going to be a time you look back on with too much fondness. However, it could still yet be the year you remember as the one where you took important steps towards creating a stronger financial future for yourself and your loved ones.

According to think tank the Centre of Economics and Business Research (CEBR), the average person in the UK was able to put aside a record £1,434 between April and June.

Diving deeper into the figures the CEBR found that, collectively, the UK saved £157 billion across this period.

“Mapping out our finances is rarely on top of anyone’s to do list, but it could make a real difference to your life,” reveals Mark Butterworth – Head of Financial Advice Planning & Research at Skipton Building Society. “With everything that’s happened this year, any extra time you now have, because of the second lockdown, could make this a really valuable moment to take stock and really think about the future.”

Building up your wealth

Any savings you’ve compiled over the last few months will no doubt prove useful towards your short-term goals – such as a well-deserved holiday in the coming future. But now could also be a good time to start thinking about how you can build your wealth to meet your long-term goals.

Mark says, “Having specific targets in mind, like making the most of retirement, is a great way to develop and improve your savings habits. The next step after this is to start thinking about the best method to try and reach these goals.

“Leaving your money in savings accounts might feel safe, but it could actually be losing you money because of inflation. Savings accounts remain a really good home for short-term financial needs, but if you’re able to tie up your money for at least five years, and you are willing to put your capital at risk, investing could be an option.”

Protecting your finances

It’s also important to think about what plans you have in place to protect your wealth – especially if you have people who are financially dependent on you.

Mark adds, “We never know what’s around the corner. 2020 has been testament to that old cliché. Cover to meet you and your loved ones' needs in the event of a loss of income due to serious health issues could give you peace of mind for the future.”

Another subject Mark suggests considering is any pensions you might have. Over 1.5 million pension pots worth about £19.4 billion could be ‘lost’ due to people moving jobs and forgetting them, according to the Pensions Policy Institute.

“It can be easy to lose track of the various pensions you pick up throughout your working life. It therefore could be worth bringing all your pensions together, making them easier to manage and easier to pass on to your loved ones.”

And then there’s inheritance tax to think about. Recent figures show that over £5.2 billion was paid in inheritance tax for the 2019/2020 tax year. Mark states, “Inheritance tax is well known for it's complicated rules that could reduce what your loves ones receive, but by choosing to speak to an expert there are ways you could tackle any potential liability.”

Take your finances to the next level

You’ve come this far, so why not take the next steps to planning a stronger financial future by taking a proper look at the fitness of your finances? It will help you to make better decisions about your money.

We’re pleased to announce that our financial advice partner, Skipton Building Society, have launched a new service that could help Mail readers like you – and best of all, it’s completely free.

Mark states, “Our Financial Fitness Report is a chance for you to look at your finances and set yourself on a clearer path to reaching your goals. It’s a straightforward process that could help you make sense of your money.”

It could take as little as 30 minutes to create your report

It’s a friendly, relaxed conversation over the phone or over Skipton’s video link service – so you don’t even need to leave the house.

During the chat they'll talk about:

Your financial foundations

Your short-term savings

Your plans for growing your money over the long-term

How you plan to manage your wealth

At the end of the conversation you’ll receive your free report.

This chat isn't financial advice. And you won’t be pressured into doing anything you’re not comfortable with. However, if there are areas where Skipton feel you could benefit from speaking with a financial adviser, they will suggest setting up a meeting – it's completely up to you if you go ahead with this.