With a new year dawning, it is time to start thinking about what might lie ahead.
If you found yourself getting caught off guard by shocks and surprises in 2025, then you can learn from that experience to make 2026 a more financially stable year.
We have some valuable tips that will help you build your personal financial resilience.
Understand your financial position
Smart financial planning is only possible if you understand your starting position.
This means taking a realistic view of your current assets and debts to determine your spending power for the year ahead.
This will enable you to build a realistic budget that should comfortably cover all expected expenses in the next year while leaving enough money to tackle unexpected costs.
Manage debt
As understanding your debt is an important part of budgeting, keeping it low is a good way to build up financial resilience.
Where possible, avoid the allure of buy now, pay later, as it can disrupt your finances further down the line.
If you do have outstanding debts, try to factor in a repayment plan that will comfortably reduce the burden.
Invest wisely
Before they change in 2027, it is possible to invest up to £20,000 in a cash ISA, a stocks and shares ISA, or a combination of the two.
After April 2027, under-65s will only be able to invest £12,000 in a cash ISA, with the other £8,000 needing to go into a stocks and shares ISA if you wish to invest.
As such, try to make the most of cash ISAs now while also exploring the possibilities offered by stocks and shares ISAs before the change happens.
This can be an effective way of growing your cash in a relatively safe manner compared to more high-risk investment strategies.
Seek expert advice
If you want to manage the expected and unexpected costs of 2026, then you need a team of experts at your side.
We can help you create effective strategies to build your financial resilience.