Most people would agree that protecting their income and paying less tax would be a good thing. There are lots of ways you can reduce your outgoings if you think outside of the box. The hacks listed below should be a good starting point.
However, you still need to perform more research. We’ve chosen to include hacks that should apply to a wide audience. Even so, there are lots of other ways to cut back. You just need to take a look at your situation and apply some common sense.
Save money: set up an emergency fund
One of the best ways to protect yourself against a sudden drop in earnings is to start building an emergency fund when times are already good. Having a savings safety net is absolutely essential.
The simple theory of an emergency fund is that if you lose your job or need money for an emergency, you can still afford your home and essentials while you look for alternative employment.
If you don’t lose your job, you still have money earning you interest in a savings account that you can enjoy in your retirement.
Inheritance tax relief
Are you looking forward to a nice inheritance payment in a few years time? Then you need to ensure you understand what will happen to the money.
At the moment, the government charges 40% on all cash that is passed between spouses. That means almost 50% of the money you inherit will never make it into your account. Thankfully, there are companies out there that specialise in getting you an inheritance tax rebate.
You just need to contact the right people and explain your situation. In most instances, you could get a significant percentage of the payment back from the government. You just need to follow the right processes.
Low-interest rate credit cards
A lot of people use credit cards to make purchases these days. There are many reasons for that, but most relate to the ease of use.
It’s safer to spend on a credit card and then clear the balance at the end of the month. That way, you don’t have to worry about overspending or taking too much cash out of your accounts. Just make sure you check the market to find the best providers.
Your credit card should offer certain essentials and low-interest rates. If it doesn’t, now is the time to make the switch. You should change your cards every twelve months regardless.
There are thousands of people living in the UK who do not have suitable home insurance. That is something that needs to change very soon. You never know when something will go wrong, and you need to make a claim.
Maybe the kids have spilt some juice over your brand new curved-screen TV? Without the right policy in place, you will have to pay for the repairs or buy a new product.
Your income is not protected if you don’t have home insurance. There are endless negative things that could happen, and you would have no protection at all.
They might seem like simple hacks, but therein lies the beauty. You don’t have to work hard to ensure your bank accounts are a little more stable. Nobody wants to deal with unexpected costs because they always come at the worst of times.
Do yourself a favour, and take notice of the advice on this page. It could help you to live a much happier and stress-free life. Those of you who fail to take heed are headed for disaster.
You will lose lots of money through government taxes, and you might never afford to save for that family holiday.