You’re a grown up right so you might not like to admit when something is confusing, particularly when it comes to personal affairs like your finances. What you might not know is that most people find financial planning confusing without professional advice and information. The trick is to do your research, ask for help and not just hope you have got it right – you might save lots of money by being in the know.
The following are four of the most common confusing financial issues and what you can do if you find yourself scratching your head.
1. Buying a home; tracker, base rate, investment – there are so many different types of mortgages it’s no wonder people get lost, whether you’re a first time buyer or even if you’ve been on the property ladder for some time. If you’re planning a new move always do your homework. Seek professional mortgage advice, read up on the options available and if in doubt ask around and find out what mortgages have worked for your friends and family. You don’t have to be a mortgage expert to make the right choice you just need sound advice and a mortgage company that will work with you through the jargon to make borrowing work for you.
2. Insurance policies; home, health and car insurance are usually top of everyone’s list but having the right level of cover isn’t always as simple as one policy fits all. When considering insurance a good starting point is to know what you need to insure and against what potential issues. Once you know your needs you can shop around for the policies that will best meet these. You can learn more about car insurance, home and health insurance from a qualified broker but as there is plenty of information on the internet you can become insurance savvy at the click of a button.
3. Pensions; pension plans can be confusing not only when choosing where to invest and how much but also as it matures and the options available to you for withdrawing your money. Unlike personal insurances pensions are best left to the professionals if you want the best return on your savings. You should definitely do your research but you will really benefit from advice to protect and maximize your investment.
4. Taxes; everyone hates doing them but they are as inevitable as breathing. There are lots of websites and software solutions to help you manage your taxes properly but if you have a lot of assets, run a business or are self-employed you will probably save time and money by employing an accountant. Most people get confused by taxes and accountancy training is a long road so don’t feel foolish for asking for help to balance your books.