From curbing your spending habits to choosing a banks account which pays you interest, there’s plenty of ways that you can make your savings grow. Setting aside a small amount now and then coould soon mean you reap big rewards. And with Christmas often being an expensive time for Britons who celebrate the holiday, the start of the New Year could be a good opportunity to sit down and take a look at your finances. So, what are the things you should be doing this January, and throughout 2019?
An expert from the investment management company Brewin Dolphin has shared some tips with Express.co.uk readers.
According to Liz Alley, Divisional Director of Financial Planning at Brewin Dolphin, one top tip could lie within how you save tax.
And, as with many savings, while the amount may not initially be a huge value, it could soon add up.
She said: “Initially the tax savings may not amount to much. But over time, particularly if you take out an ISA every year and the value of your investments grows, the tax benefits can really add up.”
Liz went on to discuss the option of a stocks and shares ISA.
Warning this could be a risky choice, as you could end up having less many than you started with, there is the possibility that your investment would pay off in the future.
She explained: “With a stocks and shares ISA, while you could get back less than you invested, there is the potential for inflation-busting returns.
“You can also spread risk, by including fixed-income products and alternative assets; place your income-producing assets in the tax-efficient ISA wrapper; and shield your investments from capital gains.”
The expert went on to discuss how parents could also use bank accounts in their little ones’ name in order to save for their future.
A Junior ISA, for example, could be opened for your child.
This way, you can save for your little one, and they can access the fund in the future.
And, if you can afford to set aside £100 per month in one of these accounts for 15 years, Liz insisted you could amass savings of more than £24,600.
“If you have children you can open a Junior ISA in their name, meaning that you don’t need to use your own tax-free allowance to help fund your children’s future,” Liz explained.
“If you invested £100 a month over the next 15 years into a Junior ISA they could amass a savings pot of £24,600 over this time.”
This is based on an assumed growth rate of four per cent net of fees – and with £100 per month being invested at 15 years, it would equal £24,609.
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