With this week’s announcement of higher inflation figures for the UK and unemployment figures steadying for the fist time in 18 months it is a crucial time to review your whole financial situation, in particular your debt/savings ratios. 

As a general rule we would always advise people to have a good handle on the cost of their debt, both mortgage and credit cards/unsecured. This would include the interest costs, the amount of outstanding balance and repayment plans. This needs to be viewed alongside savings with one eye on interest rates and the other on the taxation burden on the savings.

Questions to ask your self are:

1. Do I have an emergency cash fund?
2. Is it held in a cash ISA to maximise its growth potential?
3. Can I pay off any debt?
4. While interest rates are low is it worth paying down monthly on my mortgage? Or do I get more interest to save it?
5. Am I making use of tax efficient government products?
6. Is there merit in considering an offset mortgage the next time I remortgage?
7. (If married) are we maximising tax efficiency between the two of us?

Sometimes the worry of financial insecurity can leave us feeling a bit like a rabbit blinded in the headlights. If only that rabbit had someone with sunglasses on to say, “Look its OK, just move off to the side here I have something to show you...” Effortless but invaluable. We can often be too close to our own financial burdens to look at them objectively. There is no substitute for a clear plan.

Do not leave the tap running on your money or your hard earned efforts will slip down the plughole. Set time aside and make a plan. Get someone who can look at it objectively to help. There is no better time than today and you will wonder why you did not do it earlier.

It is that easy.