5 personal finance tips you should keep in mind

Here are 5 personal finance tips to keep in mind if you want to maximise your chances of financial success!

Tip 1

Setting aside some time each week, even if it is just for 15 minutes on a Saturday morning, can really help you keep on top of your finances. Keep track of your spending habits and look for ways you can cut costs. You can also use this time to consider some extra ways of making money on the side.

Tip 2

A useful trick to help you save more is to increase pension contributions with increases in your salary. For example, if you get a pay rise of £2,000, you may want to put half of it towards your pension. This way you’ll save an extra £1,000, as well as having an extra £1,000 to spend. This doesn’t just apply to pensions, for example you can use this trick when saving into an ISA. If you start saving as soon as you start work, this trick can be very beneficial over time. Here is why you should save your money as soon as you start work.

Tip 3

Writing down your financial goals and looking at them every day will help you keep them in mind, therefore making you much more likely to succeed. When setting your goals, make sure you have a plan for the individual steps which you need to take, and follow them!

Tip 4

Saving from an early age is one of the most beneficial financial decisions you can make. Whether it is into a pension, ISA, or other investment product, starting early will make you much more likely to be financially free later in life. Here are 8 reasons why you should start saving into a pension, even if you are only 18.

Tip 5

The amount you should save into your pension depends on two factors: the age you start saving, and the lifestyle you would like during retirement. For this reason, there is no set amount that you should save, however a good rule of thumb is to take the age you start, half it, and save that percentage of your pre-tax income every year until you retire.