When you’re younger, planning for your financial future is probably one of the last things on your mind.
However, it’s arguably never been more important that you start this process sooner rather than later in the current climate. After all, it has never been harder to gain a foothold on the property ladder, while disposable incomes levels continue to decline against a backdrop of high inflation and stagnant wages.
In this article, we’ll offer some actionable advice for youngsters who are looking to build towards a secure financial future.
Explore your Pension Options
While you may well have one or more workplace pensions in your name, this may not necessarily be enough to secure your financial security in the future.
After all, there is a worrying pension deficit in the private sector and attempting to manage multiple schemes simultaneously is exceptionally difficult.
Given this, and the fact that public funds are placing an incredible strain on state pensions, you should consider your options fully and seek out alternatives that will help to boost your long-term savings. Experts such as Bestinvest offer a variety of private schemes, for example, with self-invested personal pensions (SIPPS) providing access to a range of potentially fruitful assets. With this type of plan, you also have the option to combine your existing pension plans into a single scheme, potentially helping you to optimise your funds and create an easy to manage fund.
Optimise your Earnings
Ideally, you don’t want to continually delay your retirement as you get older in order to remain solvent.
At present, the national state pension age will have increased to 68 by 2037, and in order to avoid working so late in life you’ll need to focus on optimising your earnings while you’re young.
One way to achieve this is to combine your full-time work with additional freelancing gigs, particularly if you have a marketable skill that can be leveraged to earn income.
You’ll also need to manage your time carefully and adopt an organised approach, but this can definitely deliver results over time.
Learn the Art of Budgeting
Outside of the macroeconomic conditions, an ability to spend or manage money responsibly is one of the key contributing factors to financial struggles.
With this in mind, learning how to budget your money in relation to income and outgoings can play a pivotal role in securing your future.
The key is to be precise and deal in pence rather than pounds, while also striving to determine precisely how much disposable income you’re left with each month.
You could also use comprehensive budgeting apps like Mint to help you on your way, as they can help you to track all of your expenses while also connecting every single one of your bank and credit accounts.