Financially Preparing for New Year Plans

New year, new you? Or how about new year, new home? What are your goals or plans for the new year? Although lockdown has struck, there are still lots of chances to do new things and make this year one to remember (in a positive way)!

Now that we don’t need to be near a committing train station, some serious thought has been going into where I want to live. Of course, being close to good schools is a must, and I’m not entirely sure how far out we would move. However, there are more options now that needing to be near a train station is no longer needed. Even when life gets back to normal (presuming that it does at some point), I can’t see much of a commute ever really needing to happen.

Mortgage Calculations

As a result, looking at what is affordable for a mortgage is a must. Using the site mortgagecalculators.info has been helpful, as it gives you a clear idea of mortgages, limits, and so on. The best tool for me has been looking at the mortgage calculator, as it helps to breakdown what the monthly payments would be, depending on what kind of mortgage that you take out. This is clear to use and simple, which is a big seller for me. Moving house and making plans around that is expensive enough, am I right?

The site also has helpful advice on selling a home, as well as buying a second home. I’m not in a position to do that, but if you were, and could rent one home out whilst living in the other, it would be a pretty lucrative and efficient way of doing things.

Budgeting

For me, being someone who earns a varied amount each month, I have to have a budget and stick to it. Knowing the kind of bare-minimum that is needed each month helps me to see what I do need each month and I can work towards that. Anything over and above is what can be put into savings or used for extras like trips (when we can do that again, at least). Even if you get a regular wage each month, knowing your budget and being careful to stick to it is so important for achieving your financial goals for the year. It could be that you want to get out of debt or travel the world, when allowed. If that is the case, you need to have the money to be able to do just that, and it does take planning.

Eliminating Debt

You’re never going to be financially free if you have debt. And debt isn’t going to get rid of itself. Paying off minimum payments will take ages, so you really need to plan, alongside your budget, to see what the maximum you can pay off each month is, if you can’t clear the bill in full. It can be embarrassing, but speak to the lender too. Responsible lenders can put you on things like pay down plans, which means less interest, but does require a set amount of money to be paid off each month. It can speed up the whole process for you though.