Optimise your personal finances
Featured Products Promotional FeaturesPosted by: Dental Design 24th September 2020
Almost everyone has taken a hit financially this year in some form or another. How much you were affected will depend on a variety of factors, including your personal wealth and your previous approach to financial planning. Whatever position you find yourself in as we climb our way up and out of the COVID-19 pandemic, there will likely be ways in which you can optimise your finances and protect your future. This applies to both your personal and professional circumstances. With most practices now open again and many returning to more routine dentistry, it is an ideal time to review your situation and make improvements where you can.
Personal life first
It’s important to really understand your unique financial situation before attempting to make any changes. To do this, you’ll need to assess your income and all your expenses – starting with the regular monthly costs and then factor in less frequent expenses for accurate calculations. When you see all your outgoings in one place, it can help you to realise where you spend your money. There may be a few surprises, but these often present the easiest opportunities to cut back on your expenditure without any major sacrifices. In particular, look for unused or multiple gym memberships, subscriptions you no longer want, insurances that unnecessarily duplicate cover on valued belongings, or expired contracts for anything from your TV to your phone that have resulted in needlessly high charges.
In many cases, it can help to simplify your expenses by automating your bills and your monthly banking. Signing up to direct debits or standing orders can make it easier to budget every month and to boost your savings. These are generally very easy to set up, especially if you already use online banking services.
However, it is not just the small expenses that you should consider. One of the largest monthly payments most adults make will be their mortgage – with interest rates currently at an all-time low of 0.1%, this could present an opportunity to re-negotiate the terms of your arrangement. This interest rate could also be beneficial regarding any personal loans you currently have outstanding.
Like most things in life, a positive for some people may be less positive for others. The drop in interest rate is not such good news for savings. This, coupled with continued economic instability and uncertainty, has also caused a somewhat volatile stock market. Fluctuations in share prices will impact various businesses, including those that manage pensions. It’s important to assess your personal situation and to not panic about small and frequent changes to your pension value. Instead, focus on the bigger picture. In addition, be wary of scams – counterfeit providers will take advantage of the increased uncertainty and anxiety among the population to sell scams right now. If it seems too good to be true, it probably is. You may need to seek support of an expert in the field to ensure you make the right decisions for you.
In the workplace
In light of the aforementioned changes to the base interest rate, this is an excellent time to re-negotiate your practice finances. Contact your lenders and/or banks to see if there is anything you can do to improve the current arrangements you have in place. This might involve adjusting repayment amounts or making the most of support packages they are offering.
You should also look into whether you or your practice are eligible for Research & Development tax credits, if you haven’t already. These have previously been widely under-used, yet can offer significant financial benefits to many limited companies that are involved in some kind of R&D.
Other areas to review in terms of professional finances are your costs for travelling to and from work and the lab fees you pay – are you currently getting value for money and are there any other options available? In addition, there are various product promotions in the market right now with several dental suppliers doing what they can to support their customers’ return to practice. Utilising these could further streamline your professional expenses and optimise your earning capacity.
Finally, for principals, how you pay yourself (salary and/or dividends) may need reviewing as there may be a more efficient way of generating personal income given the current situation.
Get your ducks in a good row
With so many potential areas to streamline and optimise your finances, it’s important that you get your ducks in a row – and in the right row for you. This has always been done best with the support of experts, which is even more appropriate given the greater complexities of our circumstances today. To make sure you are maximising on any opportunities available to you, just give the experienced team of IFAs at money4dentists a call.
For more information please call 0845 345 5060 or 0754DENTIST.
Email info@money4dentists.com or visit www.money4dentists.com
