If you are behind on your savings, these tips can help you get where you want to be.
Financial advisers always advocate the concept of starting to save as early as possible. The longer you are setting money aside, the more time you have to build up a savings pot that can sustain you once you stop working. However, life’s many and varied events can often hamper an individual’s ability to assemble a large retirement fund, and many only end up being able to save at a later stage in their life.
If you have found that you need to catch up on your retirement savings, then here are five top tips that will help you accrue as much money as possible to enjoy once employment ends.
1. Eradicate all debt- Debt can be a major stumbling block to financial health, particularly if accompanied by a high rate of interest. If there are no early redemption penalties and the interest is high, it is usually advisable to focus on reducing the loan(s).
2. Pay yourself first- If you leave transferring to your savings accounts until the end of the month i.e. saving only that which remains from your previous wage packet, then you won’t succeed. Set aside a set amount at the start of the month and plan to spend what’s left, not the other way around.
3. Have separate pots for short, medium and long-term needs- For short-term goals, a deposit account is generally a sensible option. For the medium-term, a short-term savings account often works best. And when it comes to the long-term, I would typically suggest some sort of investment plan (depending on tax, earnings, time to retirement etc.).
4. Downsizing- Downsizing isn’t always an option, and it also isn’t a decision that should be rushed into. If cash is short and you are sitting in a valuable property that is too big for your needs, then selling it may end up being a wise decision. There is no sense in staying in a house that is a drain on your resources.
5. Speak to a professional- Research suggests that people who work with a financial adviser are twice as prepared for retirement. Speaking to a professional is well worth your time. Find someone who specialises in dealing with people that have similar circumstances as you, and arrange a chat in person or by phone to explore how they might help and what that help is likely to cost.
As one of the leading IFA practices in Greater Manchester, Logic Wealth Planning has a team of experienced Financial Advisors specialising in Wealth Management. Working closely with clients in the Heywood, Rochdale, Bury and surrounding areas across the North West, we believe that however modest your income may be, when it comes to Pensions, Savings and Investments we provide the best financial advice, ensuring that your money is working hard for you and allowing you to enjoy a comfortable lifestyle right through to and including your Retirement years. For your first meeting with us – entirely free and without obligation – please call us now on 0808 1234 321. We look forward to hearing from you.