Financial
planning for your future
Living for the moment is all very well, but when it comes
to your financial security there’s no shame in looking ahead. Make sure
that you and your family don’t lose out by following these four steps
to a brighter future.
1. Don’t let debt get on top of you:
If one good thing has come out of this present recession, it’s that
both the public and the government have realised how dangerous
extensive personal debt can be. Most British adults have some level of
debt, but avoiding totting up high interest loans and credit card
spending is essential to your future financial health. The interest
payments on large debts, such as mortgage payments and car loans, can
be huge, detracting from the amount you will be able to save. Go for
low interest options and only borrow in proportion to your financial
circumstances.
2. Save as standard:
Saving money is basically a state of mind. Just as a freelancer would
deduct a proportion of their income to pay in tax, so you should
allocate a small amount of your income for savings every month. Experts
agree that saving 10% of your income should give you a comfortable
lifestyle post-retirement, as well as catering for any emergencies.
It’s never too early to start, so open that high interest savings
account now.
3. Make a budget: The
best financial aid is a good budget – one which shows both your current
earnings and expenditure and how much you hope to save for the future.
A budget like this will allow you to estimate how much you need to put
away every month. Be sure to account for substantial financial hits,
such as supporting your children through university, as well as
forecasting your own post-retirement needs.
3. Take out life insurance:
Life insurance really is essential for anybody with dependents. Not
only will it provide your spouse and children with financial support in
the case of your unexpected death, it can also cover unexpected
monetary consequences such as inheritance tax charges and continued
mortgage payments. Life insurance providers such as Legal & General
also offer funeral
plans on their website, which will help protect your family
against the cost and grief of organising a funeral. Life insurance
isn’t a substitute for saving - but by both saving for and insuring
your future, you can be confident that you and your family have all the
financial security that you need.
home - submit
- shop
When we do the
best that we can, we never know what miracle is wrought in our life,
or in the life of another. -- Helen Keller
