Top money tips for young people
Updated: Oct 20, 2021
You’re never too young to start a financial plan.
Financial planning. That’s for older people - right? Wrong! Younger people need to start getting savvy about money management and take the right steps to live the life they want. Looking to get on the property ladder in the next few years? Want to stay out of debt? Read on for a few top tips from the experts at Schofield for financial management in your 20s and 30s.
Track your spending
Do you know how much you spend on takeaways, going to the gym and nights out? It’s probably a lot more than you think. Take some time each month to review your outgoings to ensure you aren’t spending more than you earn. A few small changes can deliver big results. One less take away a month or even cutting out that daily latte could save you a lot of money, giving you a much healthier bank balance at the end of the month.
Set up an emergency fund
It’s a fact that life doesn’t always go to plan. If you lost your job, would you have enough money to cover your costs (rent, credit card bills, food) for a few months? That’s why it’s a great idea to set up an emergency fund with enough money to keep you going for 2 – 3 months. Saving even small amounts soon adds up, so you’ll always have money to pay essential bills. Just make sure you put the money into a high interest savings account where it can grow.
Pay into a pension?
Retirement probably seems a long way off, but did you know that pensions are the ultimate long-term investment? Put simply, the earlier you start to pay in, the more you get out. Better still, most employers also contribute, doubling up your investment. Saving even small sums could mean you’ll be able to retire much earlier, giving you the freedom to choose how long you have to work for.
What happens if you are made redundant? How long will your employer pay you if you become ill and can’t work? Although many firms offer life cover, this doesn’t always cover life changing illnesses like cancer. An income protection insurance plan means you’ll have enough money for essential bills and to pay off any debts, giving you and your family peace of mind. There are many different types of plan available so it’s best to talk to the experts at Schofield about which one is right for you.
Save into a LISA
Are you saving for a deposit to get onto the property ladder? Did you know that a Lifetime ISA (LISA) lets you save up to £4000 each year towards your first home AND gives you a bonus of £1000? That’s 25% of ‘free’ money from the Government! What’s more, you earn interest on your investment, and best of all, it’s tax free. Why not talk to a Schofield expert about setting up a LISA asap?
As you can see, having savings and insurance plans in place are important to protect you from the unexpected and help you plan your future. Why not come and talk to the experts at Schofield? We can have a friendly chat about your future hopes and dreams and help you set up a financial plan that’s right for you.
Call us now on 01423 368000 or email us on firstname.lastname@example.org