Effective personal financial oversight accounts for day to day expenses, as well as monthly bills and obligations. But individual financial management doesn’t stop there – successful money managers also make accommodations for the future, orchestrating savings and pension planning for retirement. That means your role as household financier actually covers several jobs, all rolled into one mighty financial responsibility. With so much riding on positive outcomes, it’s important to keep your finances in order, regardless of your age.
Start Saving as Soon as Possible
Young people rightly focus on short-term financial needs. They have less experience handling money than their parents do, and often feel as though retirement planning and other financial imperatives are distance concerns. As easy as it can be to put long-term planning on the back burner, young people have a big advantage, planning their financial lives. The opportunity to invest at an early age shouldn’t be squandered.
The sooner you start saving money and planning for the future, the more time you have to reach your financial goals. When investing or setting by money in a savings account, the funds have longer to earn interest. And through the “magic” of compound returns, the interest you earn on savings ultimately generates its own dividends, helping your money grow even faster.
It’s never too late to put by cash, but you’ll maximise your retirement pot by starting as soon as possible. Even if your monthly contribution seems insignificant, time is on your side, allowing you to build financial reserves with regular, albeit small instalments.
Make the Most of Your Workplace Pension
There are several ways to save for the future, including retirement investments you hold until reaching pension age. Maximising your pension schemes doesn’t require much effort – the government sets rules and limitations governing pension participants. However, a proactive approach ensures you’re gleaning the greatest possible benefit from your workplace pension.
Automatic enrollment has taking much of the guesswork out of pension planning, helping millions of UK workers prepare for future financial needs. Though the government requires employers to accommodate workers over age 22, earning at least £10,000 annually, it makes sense to periodically review your pension. For example, a minimum personal investment of 1 per cent of your salary earns both an employee match and tax relief for your contributions. And there’s good news on the horizon for investors, who can take advantage of rising contribution rates this year and in 2019.
Don’t Leave Money Behind
Tax and finance law spell out your legal entitlements, managing money. But it’s up to you to learn what you have coming and use these laws to your greatest financial advantage. Too often, Britons are not well-schooled on matters of taxation, resulting in missed opportunities to claim entitlements. One noted example is the UK’s large network of carers, providing an invaluable service for family members and others needing help.
Carer’s allowance and carer’s credit may furnish financial relief for those spending a certain number of hours providing care each week. If you spend at least 35 hours per week caring for someone and meet other conditions of the scheme, you may be eligible for a weekly carer’s allowance. The carer’s credit is designed to fill gaps in carers’ State Pension contribution histories, protecting their future benefits for time spent caring for others.
Plan More, Spend Less
Working out a household budget can help you lower overall family spending. The process not only identifies spending trends within your household, but also provides opportunities to set spending limits and reduce your monthly outgoings.
If your strict budget is hit with unexpected expenses, short-term loans from top UK lenders can help carry you until payday. And the savings made from frugal budgeting can also be set by in a reserve fund, to use for unanticipated spending emergencies.
Whether you’re a new saver, coming into full stride at your workplace, or preparing for retirement, keeping your money in order is an essential priority, at any age.