Fund manager Amanda Redman talks to the Times about how to create your financial plan for 2023…
THERE’S no denying that 2022 has been a difficult year and finances were a big part of that, with the cost of living crisis, rising interest rates and volatile markets.
It has never been more important to create a clear financial plan to help you live the best life possible. Here are my top tips to help strengthen your position in 2023.
Clear any credit card debt that you built up in December. If you can’t clear it within one month, commit to clearing it in two or three months, maximum.
Staying out of debt doesn’t just put you in a better financial position, it can also help improve your credit rating.
At a time when the cost of living crisis is adding to the strain on our finances, and many of us are trying to reduce the amount we buy and consume – resist impulse buying in the January sales.
An item may be 50 per cent off, but if it’s not something you actually need, it’s still a 100 per cent cost to you.
To help control impulse buying, unsubscribe from all retailer marketing emails for at least a month.
Budgeting will also continue to be key in 2023. Living costs remain high so you may have to keep cutting back on non-essential spending.
Ensure you make the best use of any tax relief and allowances you have, because it is often the case that you ‘use it or lose it’.
You can also use tax-free allowances if you have capital gains or want to make gifts to your loved ones.
Don’t forget that if you have a spouse, they also have allowances that they can take advantage of, too.
Since tax rules are ever-changing and often complex, there is value in seeking advice.
Amanda Redman Financial Planning is an Appointed Representative of and represents only St James’s Place Wealth Management Plc (which is authorised and regulated by the Financial Conduct Authority).