Aventur Team

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With the 2024 Spring Budget being the last one before a general election, it will be interesting to see how the government balances ongoing inflation battles with a cost-of-living crisis, and a relatively sluggish economy.&nbsp;The cost-of-living crisis has put people’s finances in the public eye and is sure to be front and centre of the headlines at this election.&nbsp;Looking at the polls, we can see Labour are well out in front and the Tories will need to weigh up the amount of fiscal headroom they have (and cynically how much fiscal headroom they may want to leave behind!).&nbsp;Although faced with a sluggish economy and still not completely out of hot water with inflation, there are some positives for Chancellor Jeremy Hunt.&nbsp;For example, public sector net borrowing fell to £7.8 billion in December 2023 which is certainly a large number. However, it is still around half of the previous year and is the lowest since 2019.&nbsp;With the above in mind, what can we expect to see in the 2024 Spring Budget? Here are our predictions and what we’d like to see happen in March:<h2>&nbsp;</h2><h2>Possible Income Tax Cuts &nbsp;</h2>There has been speculation that any headroom at all would be used on a Basic Rate tax cut. Hinting that the rate of income tax at the marginal rate could be reduced to 18%.&nbsp;With the NIC cut in January, could we see even a 1% or 2% cut to the Basic Rate? It would certainly prove to be a popular decision.&nbsp;&nbsp;Perhaps now would be a good time to reverse some of the ‘silent tax hikes’ that we have seen with the frozen thresholds. It’s important to remember though that tax rates are different in Scotland.<h2>&nbsp;</h2><h2>VAT Changes &nbsp;</h2>If the government does opt for expansionary fiscal policy, another rumoured change could be to raise the VAT registration threshold.&nbsp;Whilst this could be good news for small businesses, it is important to consider how it would affect prices for everyday shoppers.<h2>&nbsp;</h2><h2>Investment into UK Enterprise &nbsp;</h2>Brexit unlocked new possibilities for encouraging investment in UK companies. And there is now greater flexibility regarding how incentives are applied to UK companies compared to foreign shares.&nbsp;It was rumoured in the Autumn Statement that ISA investors could be encouraged to invest in UK listed shares. So, it will be interesting to see if there are any further details released in next month’s budget.<h2>&nbsp;</h2><h2>Inheritance Tax (IHT) &nbsp;</h2>A potential end to inheritance tax is a possibility, although it has been downplayed by the Government.&nbsp;&nbsp;Only 4% of estates have been subject to the tax but it has proven to be unpopular. A change to IHT could prove to be a welcome tax break, costing the Government relatively little in lost revenue.&nbsp;Read our&nbsp;<a href="https://www.aventur.co.uk/blog/inheritance-tax-what-you-need-to-know">IHT Guide</a> to see how current guidelines may affect you.<h2>&nbsp;</h2><h2>Child Benefit Payment Reform &nbsp;</h2>After a lot of recent media attention, the current threshold for child benefit being based on a single person earning over £50k is likely to be reviewed.&nbsp;&nbsp;Currently, a couple with a combined income of £49k each is eligible for child benefit. However, if one partner earns £70k and the other earns £28k, they will not receive support. Therefore, we could see some changes and equalisation.&nbsp;&nbsp;Martin Lewis in particular has been campaigning for this change, so it is possible we will see some sort of movement on this issue.<h2>&nbsp;</h2><h2>Cigarette and Alcohol Duty &nbsp;</h2>Cigarettes and alcohol are always easy wins for tax from the government. However, it has previously been hinted that alcohol duty may not increase in this budget. &nbsp;This may be different in Scotland.&nbsp;<h2>What to expect from the upcoming budget?</h2>&nbsp;Ultimately, we all want tax cuts that put more money in our pockets. This could boost spending, savings, and potentially even influence interest rates. And a strong economy benefits everyone, so we hope the Chancellor considers this.&nbsp;Whatever the Chancellor has in store for the budget, we’ll be ready to review and dissect what any changes may mean for you and your finances. If you have any queries relating to your finances, you can&nbsp;<a href="https://www.aventur.co.uk/contact">get in touch with us</a>.

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Spring Budget 2024 Predictions

People often use the terms "financial advice" and "financial planning" interchangeably in the world of personal finance. But understanding the subtle differences between them can be the key to unlocking a more secure future.&nbsp; &nbsp;So, let's explore the crucial differences and benefits of both! &nbsp;<h2>Financial Advice: A Targeted Solution &nbsp;</h2>Imagine financial advice as a skilled mechanic diagnosing a specific issue with your car. You bring in your vehicle with a sputtering engine, and the mechanic pinpoints the faulty spark plugs. And then recommends a suitable replacement. This solves the current problem, but doesn't fully assess your car's health or future needs. &nbsp;Similarly, financial advice focuses on solving specific financial concerns; do you need help choosing the right investment for your short-term goals? A financial adviser can analyse your risk tolerance and suggest suitable options. &nbsp;Or, perhaps you're worried about optimising your tax allowance? An adviser can navigate the complexities of the tax code and recommend strategies to minimise your burden. &nbsp;<h2>Financial Planning: The Bigger Picture &nbsp;</h2>So, what about financial planning? &nbsp;Well, think of your car as more than just a machine; it is an important tool that takes you where you need to go. Similarly, a financial plan sees your finances as the driving force behind your future goals.&nbsp; &nbsp;Financial planning is like having an experienced architect draft a blueprint for your finances. They'll consider every aspect from your current income and expenses to your retirement dreams and estate planning needs. &nbsp;A financial planner will delve deep into your goals, risk tolerance, and financial constraints. They'll analyse your current financial situation, including your income, debts, assets, and liabilities. With this comprehensive understanding, they'll then:&nbsp;<ul><li>Develop a roadmap:&nbsp;This personalised plan outlines strategies to achieve your goals. This could be saving for a down payment on a house, building a nest egg for retirement, or funding your children's education. &nbsp;</li><li>Set a budget:&nbsp;They'll help you set a realistic budget spending plan that aligns with your goals and priorities. This will ensure you're not living beyond your means. &nbsp;</li><li>Recommend investment strategies:&nbsp;Based on your risk tolerance and time horizon, they'll suggest suitable investment vehicles to help your money grow. &nbsp;</li><li>Address risk management:&nbsp;They'll guide you on insurance coverage and other strategies to mitigate financial risks and protect your loved ones. &nbsp;</li><li>Regularly review and adjust:&nbsp;Life is dynamic, and so your financial plan should be able to adapt. Your planner will stay by your side, they'll review your progress and adapt the plan as your circumstances or goals evolve. &nbsp;</li></ul><h2> The Benefits of Financial Guidance</h2>&nbsp;Professional financial help offers more than just numbers; it provides targeted advice and a comprehensive plan. Here's how working with a financial professional can empower you:&nbsp;<ul><li>Peace of mind:&nbsp;Knowing your finances are in good hands can reduce stress and anxiety. This allows you to focus on what truly matters and what you enjoy. &nbsp;</li><li>Reduced risk of financial mistakes:&nbsp;With expert guidance, you're less likely to make costly mistakes. Like choosing unsuitable investments or falling prey to financial scams. &nbsp;</li><li>Increased financial literacy:&nbsp;Working with a professional helps you gain valuable financial knowledge and confidence. This can equip you to make more informed decisions in the future. &nbsp;</li><li>Greater accountability:&nbsp;Having a professional holds you accountable to your financial goals. This can be a powerful motivator keeping you on track for success. &nbsp;</li><li>Long-term financial security:&nbsp;By proactively planning for your future, you're taking control of your financial destiny. &nbsp;</li></ul><h2> Finding the right fit: Your Financial Guide &nbsp;</h2>The financial landscape is vast, and navigating it requires the right guide. When choosing a financial advisor or planner, consider their qualifications, experience, and investment philosophy. Make sure they're regulated and authorised by the FCA; as this means they must prioritise your best interests. Don't hesitate to ask questions and interview multiple professionals before making a decision. &nbsp;Remember, investing in your financial well-being is an investment in your future. Whether you want a targeted solution to a specific problem or a comprehensive plan for your financial journey. Professional help can be the compass that steers you towards a brighter and more secure tomorrow. &nbsp;So, take the first step, explore your options, and embark on the path to financial empowerment by <a href="https://www.aventur.co.uk/contact">getting in touch with our team</a>.&nbsp; &nbsp;As a starting point, why not check out our <a href="https://www.aventur.co.uk/learn/guide-financial-planning">Comprehensive Guide to Financial Planning</a>!

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Financial Advice vs Financial Planning: What's the Difference?

The festive season can be a time for joy and connection, but it can also be a time of significant financial strain. During the busy holiday season, it's common to spend too much on gifts, parties, and trips. This can lead to financial problems after the holidays are over. &nbsp;By planning ahead and looking at what you spend, you can take control and get back on track with your finances. Here are our top 10 tips: &nbsp;<h2>1. Acknowledge Your Spending &nbsp;</h2>First, you need to determine the extent of your overspending. Gather all your receipts, credit card statements, and any other records of your holiday expenses. &nbsp;Then review these carefully to assess the total amount you've spent beyond your budget. This assessment will provide a clear picture of the financial hurdle you need to overcome. &nbsp;<h2>2. Identify Your Overspending Habits &nbsp;</h2>After understanding your spending, you should learn why you overspent. Were you lured by attractive holiday discounts, or did you feel pressured to keep up with others' gift-giving habits? &nbsp;Understanding your motivations will help you develop strategies to avoid similar situations in the future. &nbsp;<h2>3. Create a Realistic Budget</h2>&nbsp;The next step is to set yourself a budget that you can stick to. A well-structured budget is the foundation for financial stability. After the holiday splurge, it's crucial to create a budget that aligns with your current income and expenses. Start by calculating your monthly income and subtracting essential expenses like rent, utilities, groceries, and transportation. You can put anything left over towards non-essential expenses, savings, and debt repayment. For help with budgeting, check out our guide to&nbsp;<a href="https://www.aventur.co.uk/blog/which-budgeting-method-right-for-you">which budgeting method is right for you</a>.<h2> 4. Prioritise Your Debts</h2> If you have debts, remember that it's important to pay them off first. This includes any money you owe on your credit card or any overdrafts. By doing so, you can avoid incurring extra fees and interest. Focus on debts with the highest interest rate first to minimise the impact of compounding interest. Consider combining multiple debts into a single loan with a lower interest rate to streamline repayment.<h2> 5. Implement Cost-Cutting Measures</h2> To free up additional funds for debt repayment and savings, identify areas where you can cut back on spending. Save money by cooking at home, cancelling unused subscriptions, and negotiating lower rates on phone or internet contracts.<h2> 6. Explore Additional Income Opportunities</h2> If your financial situation is particularly challenging, consider exploring additional income opportunities. Taking on a part-time job, freelancing, or monetising your hobbies can provide a much-needed boost to your income.<h2> 7. Get A Professional Opinion</h2> If you're struggling to manage your finances on your own, don't hesitate to seek professional assistance. A financial advisor can provide personalised guidance, create a customised plan, and help you make informed financial decisions. If you feel like you'd like to speak to our team, we'd love to hear from you! <a href="https://www.aventur.co.uk/contact">Get in touch with us here</a>.<h2> 8. Control Your Spending</h2> Regaining financial stability requires a commitment to long-term financial discipline. It's important to avoid impulse purchases, set realistic spending limits, and prioritise saving.<h2> 9. Plan for the Future</h2> To prevent similar financial setbacks in future holiday seasons, start planning and saving early. Set aside a specific amount each month to cover holiday expenses. This will help you avoid dipping into your emergency fund or taking on additional debt.<h2> 10. Embrace a Minimalist Lifestyle</h2> Consider adopting a minimalist lifestyle to reduce spending and simplify your life. Decluttering your home and removing unnecessary possessions can free up space and reduce the desire and impulse to buy material possessions.<h2> Conclusion</h2> Overspending during the holidays is common. By planning in advance and exercising discipline with money, you can fix the situation and prevent any future overspending. Remember, financial recovery is a journey, not a destination. Be patient, stay focused on your goals, and you'll achieve financial stability and peace of mind.

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