Post by Emily Taylor
During these difficult financial times, if you’re finding yourself living from one paycheck to the next, then you’re not alone. For many, the idea of planning any kind of financial future is a luxury only few can afford and anything further away than the end of the month simply isn’t in your remit. However, just because we’re living on tighter budgets right now, doesn’t mean we can’t plan ahead and look forward to the future.
It’s worth remembering that no two financial plans are the same and you can improve your financial security no matter what your salary or your budget might be. Read on for some simple steps to get you financially motivated.
Think about your pension
If you’re someone who’s had several jobs over the years you may have been enrolled in multiple pension schemes during your employment. Frustratingly, over their lifetime many people lose track of all their pensions, which means missing out on hundreds or potentially thousands of pounds when they retire! Transferring all your pensions into one easy to manage pot, will help you to understand your retirement funds better and keep on track of your pension. Wondering ‘how do I transfer my pension?’ Click the link for more information to start making the most of your hard-earned money!
Write down your financial goals
Pix: Pexels
Yes, we all want to win the lottery and retire when we’re in our 30s, but those kinds of goals aren’t really helpful. Being realistic about your aims and writing them down is a commitment to your future and allows you to create a strong fiscal foundation. Don’t forget to break down your goals into bitesize versions. Say you want to save for a house deposit, instead of leaving this random and vague statement in the air, figure out how much you need, aim to open up a savings account and then plan to save X amount towards that each month. The more manageable and realistic your goals, the more likely you are to smash them.
Create an emergency fund
If this year has taught us anything, it’s that anything can and will happen. As well as saving for your future, it’s vital that you’re putting money aside for any financial emergency that might arise. A broken freezer, emergency car repairs, additional rent in case you lose your job or money to use while you wait for your benefits to kick in.
Your debt has to go
As long as you have debt hanging over you, you’re always going to be in its shadow. Minimum monthly payments on numerous accounts as well as interest rates mean you’re going to struggle to plan for the future whilst your money isn’t your own. Focusing on paying off your debts will improve your financial security and give you peace of mind. Reach out to your creditors for help or a debt charity for advice.
And finally, be patient
When it comes to our finances, we need to be patient. Whether we’re saving for a house, or we’re trying to pay off our debts, remember to focus on your manageable goals and you’ll see plenty of progress!
