Over a year ago it was a credit crisis but the recent news of a recession has prompted many Britons to evaluate their current financial situation and see how it can be improved.
Although the threat is more immediate to those in debt, performing a financial health check can be beneficial to everyone, even those who are debt-free and have significant savings. Financial prudence may be the new business buzz phrase but it applies equally to domestic situations. Additionally, carrying out a review of all your current financial products such as bank accounts and insurances may well highlight other possible savings.
In the good times when income is high and debt is easily available, many people adopt a certain level of inertia when it comes to financial matters. Indeed, many are happy to continue with their current financial providers and not give it a second thought. However, now that recession looms over us all that lack of interest in investigating more beneficial options is fast becoming obsolete.
Examine the cost of home insurances. Many homeowners settle for buildings and insurance contents cover that is automatically provided by their lender rather than shopping around for a better deal. Mortgage holders are obligated to having a building insurance policy, but that does not have to be taken out with their lender. Cheaper insurance may be available elsewhere and many insurance companies offer a discount for buying home and contents insurance together, which could save a significant amount.
Similarly, the cost of car and other vehicle insurances should be regularly reviewed. In the UK car insurance quotes are readily available online and those estimates can quickly be compared to existing premiums to determine whether any savings can be made. Some people save time by enlisting an insurance broker to do the investigation work, but they may factor in a commission to any quotes.
However, it is important to note that moving insurance cover other than at renewal time may incur a penalty payment from the incumbent insurer. Therefore, it is better to do the research ahead of the renewal date and switch when the renewal notice arrives thus allowing the savings to be enjoyed immediately. Furthermore, insurance premiums that are paid monthly sometimes incorporate a hefty interest rate, so by switching to annual premiums could also save as much as 25% over the year.
There are many other ways to save money by reviewing all finances, but starting with the main financial products is a solid beginning and could ensure that a good discipline is adopted, which is always a good habit!
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Andrew Regan writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.
