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| Finance (Photo credit: Tax Credits) |
When you reach retirement age, it is very
important that you manage your finances. If you won’t continue working and will
stop as soon as you start to receive your state and/or company pension, it is vital
that your finances are kept in order. Here is how you can stay on top of your
finances.
Create a budget
It is imperative that you make a budget. By
writing down all expenditures, you’ll know exactly how much money has to be
paid every month. When this is compared to what your pension is, you’ll know
about any spare capital. When you have a workable budget, you won’t spend
beyond your means.
Pay bills within days of each other
If you have many bills to pay throughout
the month, it is recommended that they are taken out of your account within several
days of each other and not sporadically. Utility companies might enable you to
change when payment is taken out of your account and your local council might offer
several days every month when council tax payments can be deducted. When bills
are taken out of your account within a few days of each other, you’ll be able
to manage your finances more effectively.
Clear your debts
If you have a considerable credit card bill
or any other form of debt to pay, this should be cleared as soon as possible.
Setting aside a particular amount of money in your budget every month, your
debt levels can be reduced. When you no longer have debts, your credit history
will improve.
Choose a credit card which charges a low rate of interest
You might have many credit cards. However,
this isn’t necessary because you should only have one credit card. If you have
a credit card which charges a significant rate of interest, your bill will be
very high if you don’t pay back what you owe to your credit card company. If
you want to have a credit card bill, you should choose one which charges a
lower rate of interest. Therefore, even when you don’t pay your credit card
bill on time, you won’t have to pay a lot in interest.
Pay off your mortgage quicker
Although you don’t want to have any
mortgage payments left when you reach retirement age, this might not be
possible. If you haven’t paid off your mortgage before you retire, you could
arrange a meeting with a mortgage adviser. Providing help about how a mortgage
can be paid off quicker than it is at the moment, it is in your best interests
to pay off your mortgage as soon as possible. This is because you won’t be
liable for mortgage repayments anymore and you’ll have extra capital which can
be spent elsewhere.
Choose an ISA
The current interest rate for savings
accounts is very low and as little as 1% might be given. If you have a
considerable sum of money in your savings account, you won’t get as much in
interest. However, an Individual Savings Account (ISA) can help because you can
take advantage of a much higher rate of interest. More than 2% can be offered
and some ISA’s give a 2.5% rate of interest. It is recommended that you find
out about ISA’s which are being offered by other banks than where you currently
have a savings account. This is because you could find an ISA which offers a
better interest rate.
Shop at other supermarkets
You might be spending too much money on
your weekly shopping bill. Many supermarkets, such as Aldi and Lidl, are
cheaper than Asda and Tesco and the same quality produce can still be bought.
You could discover that up to 40% can be saved when you shop elsewhere. In
fact, you might wonder why you haven’t shopped at other supermarkets before.
This post was brought to you by Company
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