Advice for over 20’s

Throughout our many years of helping clients with their finances there are a number of ‘ age related’ questions we have been asked on a regular basis. We strongly believe there is no question too small. They are all relevant…and if they are relevant to you they are important to us and our ability to help you. We have therefore categorised a few of the most common questions which we hope you find helpful.

However, if you are anxious or confused about your financial future feel free to book a free consultation here.

Whilst you are paying rent and trying to have a life, the idea of saving up a 5% deposit to buy a property can seem like a daunting task. One tip would be to use the tax free allowances within a Lifetime ISA. For every £100 you save the UK Government will pay in £25 as long as it is used towards a first time mortgage.

You should never put off starting, even if it just £5 a month, it will begin to build up. You could attempt to increase the amount by an extra few pounds each month. If done gradually you will not feel the impact as much. In addition if you are fortunate enough to receive a pay rise, save at least 50% of the increase. You will feel the benefit in your personal life and also increase your savings.

If you are over 22 and earn at least £10,000 you will automatically be enrolled into your Employers Workplace Pension. Whilst you may not want to have a small amount deducted from your wages every month you must remember that if you opt out you will also miss out on the employer contributions – effectively turning down a pay rise. You may not benefit straight away but you appreciate it in the longer term.

If you have a savings account or Lifetime ISA for your deposit, a pension with your employer and perhaps other savings it can be difficult to keep track, with different log ins for each provider. Using a portal, such as our own, you can keep track of all your finances in one place. We can assist you in setting goals and our portal can keep you up to date with your progress. It is also widely known that you are less likely to deviate from your goals if you have to justify it to a third party.

You may have built up a bit of credit card or loan debt, buying a car to get to work, paying a landlord’s deposit on a new flat or buying some furniture for your new home. It may seem obvious to pay off the debt with the highest interest rate first but this is not always, psychologically, the right course of action. We have helped young clients review their debts and advised them to pay off the smallest debt first. The repayment savings can then be used to repay the next debt in line and you can feel that you are making more progress by clearing debt quickly.