Although our goals change as we go through life, at the back of your mind you should always think about the little changes you can make to grow your wealth. Whether you’re 26 or 62, some changes will make a considerable difference to your fortunes now and in the future. So, what are they? Here are our quick-fire tips!
1. Build an emergency fund
No matter what stage of life you’re at, you never what’s around the corner. Whether it’s a job loss, an injury or illness that prevents you from working or an unexpected cost, life will have an unpleasant surprise for you one day. That’s why you need to start building an emergency fund now. Ideally, it should cover your living costs for 6 months and remain untouched until you’re confronted with an emergency.
2. Get out and stay out of debt
The primary benefit of building an emergency fund is that if the worst does happen, you won’t have to rely on credit just to make ends meet. The only real good debt is a mortgage, as long as it’s at the lowest interest rate of interest, because it will help you build your wealth in the long-term. Any other debts should be avoided as much as possible.
3. Start saving for retirement in your 20s
You should start saving for your retirement as soon as you can because the sooner you start, the longer your pension pot will have to grow. Many financial planners recommend that you should save 10% to 15% of your income for your retirement, starting in your 20s. Here’s an additional 10 financial tips for 20-somethings courtesy of the lender Wonga.
4. Pay off your mortgage as early as possible
These days, most mortgage lenders will allow you to make overpayments over and above the agreed monthly repayments on your mortgage. Any overpayment you can make is beneficial because it goes straight to paying off the capital amount and is not eaten up by interest costs. The more overpayments you can make, the quicker you can live blissfully mortgage-free. If you are looking to speed up payments on a mortgage for a property you own abroad, you may wish to seek the advice of an overseas property expert like https://www.simonconn.com/ to see if they know of anything that can be done to help you get this expense eliminated as quickly as possible.
5. Spend less on vehicles
Money spent on cars and motorbikes is wasted – it’s as simple as that. All cars depreciate very quickly. Then there’s the fuel, road tax, insurance, and service to think of, all of which is money you’ll never get back. There’s also been a marked increase in the number of people relying on finance agreements to buy cars. Car loans are one of the highest-cost debts for many households. Instead, buy a reliable and fuel-efficient second-hand vehicle outright if you can’t live without a car.
Do you have any financial tips that have helped you grow your wealth? Please share yours with our readers in the comments section below.
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