Budgeting for the Future

With a New Tax Year Upon Us, Is It Time to Start Budgeting for the Future?



Posted on: 9th February 2024

With the tax season over and a sigh of relief over making ends meet for another year, you should ask yourself if this year could be any different if you approached your budgeting for the future and financial plans a little differently.

Spending our hard-earned money on a variety of seemingly overpriced necessities and indulgences over the last year has seen many people having to dip into savings or stop certain payments to make ends meet with groceries and energy bills in these tough economic times.

UK consumers have reduced spending on home upgrades and new clothing due to the costs associated with rising living expenses. That has also stretched into opting out of pension payments and less focus on investing avenues. However, could getting a grip on your finances for 2024 be as simple as having the right financial advice from independent financial advisers Manchester?

Where the Money Is

In 2023, despite the surge in prices on pretty much everything, people were directing their money at events such as family holidays, socializing get-togethers, and concerts. That is a marked contrast to an economic struggle that sees many people facing high daily expenses, bills, and home improvements.

That means people were redirecting certain finances into creating more memorable, social, and shared experiences that are expensive – but where is that money being redirected from? The most highlighted area would be taking money from savings and rainy day funds, almost like living for the moment and not thinking about tomorrow’s approach.

However, the long-term future on your financial health could see the greatest impact, especially if your savings have been a major part of your retirement planning Cheshire.

Post-Pandemic Viewpoint

The current trend of spending now and worrying tomorrow is a spinoff of the ever-shadowing post-pandemic legacy – a time when many people feel they have to make up for lost time and lifestyles.

With so many priorities changing as a result of having usual lifestyles locked indoors, many had a renewed respect and desire for external activities that they swore would never be taken from them again. The psychological effects of the ongoing economic unrest and with no foreseeable resolution soon may be making many feel that they have to take advantage of life now – especially as the state pension age is seemingly out of reach for many and work is destined to be longer for many.

However, sound money management is essential when it comes to security for the long term, and an ideal balance can be found with consultation with independent financial advisers Cheshire.

Contact our skilled advisory team at Haven IFA today for a fresh start on budgeting for the future.