We all know January is the perfect time to try and do something different, so set yourself on the path to a better financial future by changing your relationship with money this year.

Where you are and your current financial situation doesn’t need to continue. You can embrace new habits. They won’t always be perfect, but they will set you on the journey to financial freedom – by which I mean freedom from the worries of money.

What a year it’s been. Here are my reflections on some of the events of the year, and what we can take forward into 2021 from the experiences we’ve had.

In 2020, the overall cost of dying once again increased. It’s now at an all-time high of £9,493, according to SunLife, for a basic funeral, professional fees and a send-off. Over the last 15 years this has increased at almost 6%pa – a rate far higher than inflation.

Because of the rising costs, in recent years it has become increasingly common for people to take out a pre-paid funeral plan. Not only is a plan an easy way to get a funeral arranged, but it also protects those you leave behind from rising costs and uncertainty about any specific final wishes.

But with that rise in demand has come increased concerns about value and outcomes. Without specific legislation, what was covered – and more importantly, what wasn’t – when it came time to pay out was not always as expected.

That’s set to change with new legislation on the way to bring funeral plan providers under the regulation of the Financial Conduct Authority.

I’m often told, ‘I don’t want to live like a miser now just so I can retire rich – I may never make it!’

To which I reply, ‘I don’t want you to be a miser either… be a conscious spender instead.’

Being a conscious spender is being frugal, not like being Scrooge. It’s not about denying yourself all of life’s pleasures. It’s about being aware of your outgoings and focusing on a few financial priorities.

So what do we mean by frugal?

For more details read:

https://warrenshute.com/saving-investing/saving-up-doesnt-mean-you-need-to-be-scrooge/

There’s been a lot of talk about the chancellors spending review recently, but what is it?

A spending review is a process carried out by HM Treasury (the governments' financial department) which sets out how much taxpayers money is allocated to each government department to spend on things like the NHS, schools, and the police.

The review is vast and covers about half of all government spending including defence, transport, welfare, education, housing, culture, trade, business and covers the income paid to the devolved administrations such as Wales, Scotland and Northern Ireland.

I was explaining to my staff at my financial planning firm Lexington Wealth this week about compound growth.  Compound growth is why the rich get richer, but it’s how you can get richer also.  Albert Einstein once said about compound growth ‘…it’s the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it’.

Money is an emotional thing. I liken it to a diet or our weight: we don’t like to talk about what we earn, or how much we have saved, or what we weigh because we worry others will judge us.

But not talking about money is causing problems in society, with a real psychological impact too. Mind, the mental health charity, puts it well – poor mental health means managing money is harder, and worrying about money makes mental health worse. The Money & Pensions Service (MaPS) recently ran a campaign which included new research revealing the lengths we go to in hiding our finances, even from those we love.

November lockdown means many of us will be back to working from home. Whether you’re rejoicing or despairing at that prospect, it brings additional heating and lighting costs as we head into the chilly months. Listen to this episode to find out how you can save tax on household bills and other expenses.

The Government’s financial support package keeps changing, if you’ve not been able to keep up to date don’t worry here’s a summary on the Furlough scheme, self-employed help, sick pay, mortgage holidays, and tenants.

There were 90,871 divorces in England & Wales in 2018 and 6,873 in Scotland, although divorce rates as a proportion of marriages are at their lowest rate in nearly 50 years. Of course, 2020 could buck that trend as we’re spending far more time together under one roof, working, playing and perhaps arguing. So if the worst happens in a marriage, what happens to our pensions? There are three methods by which pension benefits are taken into account on divorce, each with their own considerations.