Tuesday, 12 February 2019

Why It's Important To Save For Your Financial Future

Whether you’re young and just beginning your career or you’re approaching retirement, it’s always a good time to start thinking about your financial future. You might not think you have enough money to start saving for your future, but any amount of money can help, however big or small. So why exactly is saving for your financial future so important?
silver MacBook near papers and plantNobody ever knows what’s going to happen. You might feel secure in your job and have a steady income right now, but unforeseen circumstances such as redundancies can always occur. If you unexpectedly lose your job, it’s important to have a safety net to fall back on to tide you over until you find a new opportunity, and that’s where savings come in. Regularly putting part of your income aside in a savings account is a great way to get some peace of mind and prepare for the unexpected.

Saving money will also benefit you when it comes to retirement. If you work within a UK company, the chances are that your workplace already has you enrolled in a pension scheme. While many workplace pension schemes can help you retire with an attractive sum of money, combining this with your own personal savings account is often the best strategy. Lifetime ISA’s are a popular way to save for retirement. With these, the government provides a 25% bonus on your savings contributions, meaning that if you put the maximum amount into your account each year, you’ll receive a £1,000 bonus every 12 months.

One of the most important things to remember when it comes to saving is the sooner the better. The earlier you start saving money, the more interest you will gain, which is why saving money while you’re young is so vital. If you find it hard to save money, think of things you can do to simplify the process for yourself. This could mean setting up a direct debit with a small sum of money to leave your account each month which will make you less likely to notice the money leaving your account.

While these strategies are all well and good, the reality is that the higher your income, the more money you’ll be able to save and the better your financial future will look. You can check your likely retirement income with pension calculators which use your current salary, date of birth and gender to predict the yearly income you should have once retired. If this doesn’t fit your financial goals for the future, it’s worth thinking about ways to boost your income as a whole. One popular way to do this is with investing, and property investment is the perfect route to take. When done properly and with the right know-how, property investment can boost your income dramatically.

Certain UK cities like Manchester and Liverpool provide a lot of potential for return on investment and capital growth. Companies like RW Invest, for instance, offer opportunities with rental yields as high as 7 and 8%. By investing and generating money on top of your monthly income, you’ll be able to save larger amounts which will help as a rainy day fund or go towards your retirement.

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