Your financial roadmap to the end of lockdown

Restrictions on life in the UK are gradually easing – it’s been a long, hard journey through the pandemic, but we’re on our way back to normal. If everything goes according to plan, we could see an end to all restrictions by the summer. Here’s how to make sure your finances are in the best shape for you to enjoy it.

Changes to your spending

It’s so exciting to be able to spend more time socialising with family and friends, or just doing the things you enjoy, whether that’s browsing the shops, going to the gym, or even finally getting that long-overdue haircut. It also means you might be spending money on things that haven’t been possible for most of the last year!

Even just returning to the office means spending money on your commute again.

We’d always recommend that you make a budget each time you get paid. If you don’t do this regularly, now is a great time to start – with your spending patterns likely to change, it makes sense to plan your income and outgoings so you don’t overspend. Read our blogpost about setting a budget for yourself.

Changes to your income

Maybe you’ve been on furlough and you’re going to be heading back to work soon; maybe you were, sadly, made redundant during the pandemic and you’re on the lookout for a new job; maybe you’re self-employed and finally able to start trading again. Whatever your situation, when your income changes it’s best to be prepared so you can make the most of it. Again, think about making a budget so you don’t overspend; and give us a call so we can review your payments to make sure they’re set at the right level.

And if you have a little more money coming in, it could be a good time to start putting a little money away. We recommend that you save money during your debt solution if you’re able to – either by putting away any money you find left over in your existing budget; or by speaking to us so we can add a small allowance for savings into your budget (usually 10% of your disposable income, up to a maximum of £20 per month).

If you are able to save a little, here are a few tips and ideas:

• Find a savings account that’s flexible. If the last year has taught us anything it’s that life can be unpredictable; so it might be a good idea to put that extra cash somewhere you can get hold of it again quickly if and when you need it. That means it’s best to avoid inflexible ways to save, like regular savings accounts. Instead, have a look around for a current account or an instant access savings account with a competitive rate of interest (bear in mind interest rates are very low at the moment). You can find more information about how to save on the Money Advice Service
• Check if you’re eligible for Help To Save. If you’re on a low income and receiving certain benefits, you could get 50p free from the government for every pound you save – read our Help To Save blog to find out more.
• Start saving for Christmas. It’ll be here before you know it! Putting some extra funds away now can help you get through the most expensive time of the year without falling behind on bills or borrowing more. Check out our blog on the best ways to save for the festive season.
• Save while improving your credit score. LOQBOX is a savings account which reports your regular deposits (a minimum of £20 per month) to the credit reference agencies as repayments on a loan, thus improving your credit score.
• Could you put the money towards your debts? If you are on a Debt Management Plan and you can afford to increase your payments, you’ll be able to clear your debts that bit more quickly…speak to a Personal Finance Manager and they can discuss your options with you.

 

Do you need a review?

It’s important that your debt solution remains affordable to you. So if you’ve had any significant changes to your income or expenditure, give us a call and we can review your budget with you. Life might be changing – but we’re still here for you!