2012 is sure to be another topsy turvy year for the UK and global economies, taking the following as a starting point should stand anyone in good stead for whatever’s in store.
Take Advantage of The Low Interest Rate
The Bank of England’s base rate remains at an all-time low of 0.5 per cent as 2012 begins, this may not be such great news for savers, but any one repaying a mortgage could benefit greatly from the situation.
Monthly repayments on tracker mortgages have halved over the past 5 years, so for many customers it will be a good time to make overpayments and reduce the overall debt, just make sure that the terms and conditions of your mortgage don’t include any penalties for this and remember that a mortgage is likely to be your cheapest debt, so higher interest borrowing such as overdrafts or credit cards need to be taken care of first.
Start a Pension Fund
Clever savers who start putting £75 a month away from the age of 20 for their entire working life are likely to end up with close to £20000 saved up by the time they retire.
Delaying this, even by as little as ten years, can drastically reduce the amount put away at the end of an individuals working life and leave them struggling, even with the government’s plans to increase the retirement age and give workers a few more years to save money.
Get the Right Insurance
Research suggests that a total close to £200 billion worth of home contents in the UK is un or under insured. Taking the time to note down all the items you own and the cost of replacing them may be a tedious process and could result in your premium going up, however, both of these are preferable to being forced to dig into savings if the worst happens.
Get the Best Deal on your Current Account
Every year more people in the UK get divorced than switch bank account providers. Many of the UK’s banks currently offer all kinds of introductory deals to reel in new customers, but these often only last for a set period of time, after which the account becomes much less beneficial, so for savvy consumers who are willing to shop around a bit there are significant savings to be made..