The best investment you can make is in yourself. Whether it's pursuing further education, acquiring new skills, or taking care of your health, these investments will pay off in the long run.
As a slightly more ‘mature’ financial adviser, I often think back to my younger years and cringe! Not just because of the hair but also because of some of the more dubious financial decisions I made….did I really need to buy that many Minis?
Financial advice was for the old and wealthy, not for a just starting out youngster like me. However, if I could go back in time and give my younger self some pointers, here are the top things I'd say:
- Start early: It's a cliché for a reason - time really is money. Especially when it comes to saving for retirement. Take advantage of employer contributions and tax benefits as soon as possible, it makes a world of difference down the line. Starting a pension early allows you to benefit from the magic of compound interest. Imagine this: small, regular contributions snowball over time, thanks to interest earned on your interest. The longer you wait, the more playing catch-up you'll do later.
- Budget like a boss: Let's face it, budgeting isn't cool. But it's the foundation of financial health. Track your income and expenses – every coffee, every night out – for a month. It's an eye-opener! You might be surprised where your money's going. There are loads of free budgeting apps and resources available to make it easier. Once you understand your spending habits, you can make informed choices about where to cut back and where to invest.
- Not all debt is created equal: A student loan can be an investment in your future, while credit card and worse pay day loan debt with their sky-high interest rates can quickly become a burden. Be mindful of where you borrow money from and for what purpose. If you do find yourself in debt, pay it off strategically and focus on the high-interest loans first.
- Invest in yourself: The best investment you can make is in yourself. Whether it's pursuing further education, acquiring new skills, or taking care of your health, these investments will pay off in the long run. They can lead to better job opportunities, higher earning potential, and a more fulfilling career.
- Embrace financial literacy: Knowledge is power, especially when it comes to your finances. Don't be afraid to ask questions, read books and articles, and of course, utilise the power of financial advice. The more you understand about money management, investing, and financial planning, the more confident you'll feel about making informed decisions for your future.
Everyone’s financial journey is unique. There will be bumps along the road, but with a solid foundation, sound financial advice and a willingness to learn, you can set yourself up for a bright financial future. Now go forth and conquer your financial goals!
By Daren Wallbank
Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. 13/06/2024
