Keren Bobker, Senior Consultant at financial services company Holborn Assets, shares why saving now will spare you later…
Set aside some time to formulate a monthly budget. Once you’ve established how much you need to spend, you can work out what you can save and then what is disposable. If you keep going over budget, leave the cards at home and stick to using cash.
Everyone needs to be saving for their future, but there is no need to commit to a 25-year plan. These arrangements are more for the benefit of the salesperson than the individual. It’s far better to consider something with a much shorter term and more flexibility. Make sure you understand any arrangement you sign up to and get all the information in writing. If you are not certain or are unhappy with the plan, walk away and find an adviser who will properly explain the options to you as well as the pros and cons.
Most people need a little discipline when it comes to saving and the sooner you start the better. Investing for the future may not be as much fun as going to brunch, but one day you will be glad you did it.
There is no set formula regarding how much you should be saving, as all circumstances are different, but I would say that the minimum starting point should be ten percent of your income in your 20s and more as you get older, especially if you have little savings so far. Naturally if you can put away 20 percent of your salary every month that’s better.