Recent research1 shows that many of life’s most enjoyable events come with a hefty price tag. The research calculates that going to university, buying a house, getting married, having two children and then retiring could, on average, add up to £566,659 over the course of a lifetime. This is a huge sum and illustrates the need for careful planning.
Separating ‘wants’ from ‘needs’
Many people believe that the key to meeting financial goals is to identify what is most important to you. For instance, whilst you might want to eat out several times a week; affording a home of your own, or enjoying a comfortable retirement, might mean cutting down on these nights out.
The problem is that we can all find ourselves trying to save for multiple goals at once and this can feel like an almost impossible task. This is where taking financial advice can really help. We will be able to assist you in putting together a financial plan that addresses both your short and longer-term financial needs.
Getting the savings habit
As a starting point, everyone needs to have some money put away for emergencies like an unexpected bill. This means having some cash that can be accessed quickly. Then it makes sense to think about the bigger and more exciting things in life, and have money saved that steadily builds up for the future. Tax-efficient accounts like ISAs can really help here and you can invest lump sums or make regular monthly contributions.
Whatever your age, plan for retirement
You should certainly think about your pension savings, even if retirement seems light years away, it will come around quickly enough, and the more you can save now, the longer your money has to grow. If you think about it, failing to save for retirement might mean you’re struggling to afford even the basics in years to come.
1Royal London, 2019
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
The information contained in this article does not constitute advice, please contact a financial adviser for advice based on your individual needs and circumstances.