Skip Header

3 ISA resolutions to make 2020 a year to remember

Emma-Lou Montgomery

Emma-Lou Montgomery - Fidelity Personal Investing

Important information: The value of investments and the income from them, can go down as well as up, so you may get back less than you invest.

None

January is always a challenge with both Christmas and the New year celebrations behind us. However, that shouldn’t stop us from creating some resolutions to help us better manage our finances in 2020.

Why not use it as an opportunity to kick-start good habits, set new plans into action or make a fresh start?

Maybe 2020 is the year you’re getting married or starting a family. You might have plans to buy your own home or start your own business. Whatever your hopes and dreams and wherever the year takes you, having the security of knowing you have already kick-started your savings will make all the difference.

So, this year, rather than letting the new year blues get to you, take one positive step today and kick Blue Monday on 20 January into touch, with three new year resolutions for 2020 that you can start today.

1. Pay yourself first

Take a look at how many standing orders and direct debits you have set up that automatically siphon your hard-earned money out of your bank account every month. It’s only right that you pay your dues, but it’s also time to add yourself into the mix.

We can each save £20,000 a tax year into our ISA. That’s a lot of money and as all the profits you make within your ISA are paid to you tax-free, it’s a great, tax-efficient way to get your money working harder for you. So, make a resolution to start saving into yours this year.

The trick is to start small, but keep your savings regular and you will it will pay off in the long run.

You can save from as little as £50 a month into your ISA. Over time that will grow nicely and you will soon find that small sum you set aside every month becomes just another of your monthly outgoings. Except this time, you will have something to show for it.

2. Simplify your finances

Much like trying to keep track of a number of pensions when you have them with various previous employers, if you’ve got lots of different ISA accounts it’s time to simplify things.

Combing all your ISA investments together into one account makes checking you’re on target easier and could save you money. It’s far easier to see how your overall portfolio is growing when everything is in one place.

Just make sure that when you do transfer your ISAs into one place you use the ISA transfer service. That way your ISA savings and the tax breaks that come with investing in an ISA won’t get lost along the way.

There is no transfer fee to pay when you transfer your ISAs to Fidelity and we will also cover any exit fees your former ISA provider might charge you, up to £500 per person. Please note T&Cs apply.

3. Save and invest without sacrifice

How many times do you really use that gym membership? Is your TV package really worth the monthly cost? Could you really taste the difference if you opted for supermarket own-brand rather than the household names you usually go for in your weekly shop?

Make a resolution to make a saving on one thing you’re frittering money on unnecessarily and then invest the money instead. Whether you’re saving for a rainy day, planning to start your own business, have a big life event coming up in 2020, such as a wedding, the arrival of a new baby or a big house move, or maybe your priority is simply to look after your future financial security, then setting up a savings habit that doesn’t require sacrifice means you’re more likely to stick to it and keep going.

So whatever plans you have for 2020 and beyond, make this the year you really take charge of your finances.

Important Information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of  an investment you should speak to an authorised financial adviser. Before deciding to transfer an ISA, please read our transfer guide Moving your investments to Fidelity which explains the options available and gives you the important information you need to know. Tax treatment depends on individual circumstances and all tax rules may change in the future. Please be aware that if you transfer share classes that are not supported by Fidelity, they will be sold and the proceeds will be reinvested in supported share classes, which means you will be out of the market for a short period and may have to pay additional costs as a result. If your investments are moved to us as cash, you will be out of the market while your money is being transferred, so you could miss out on growth and income if the market rises during this time. Currently, completion times can be between 4-6 weeks but could be longer as the process is reliant on prompt action by your existing providers whose time frames can be variable.

 

What you could do next

Get help choosing investments

Whether you need a lot of help or a little, we have the right tool to help you find an investment.

Start a tax efficient savings account

Invest in a Stocks and Shares ISA and pay no income tax or capital gains tax on your returns.

Start looking after future you, today

Take control of your retirement savings and get your money working harder with the Fidelity SIPP

Latest insights

My Tonka truck ISA strategy

Secure your allowance this weekend


Daniel Lane

Daniel Lane

Fidelity Personal Investing

Three crises in one

Investors must weigh medical, economic and financial factors


Tom Stevenson

Tom Stevenson

Investment Director

Don’t let Coronavirus blow your ISA off course

Using your allowance now will help you make the most of recovery


Ed Monk

Ed Monk

Fidelity Personal Investing