For so many people, money matters are a thing of the here and now. A lot of the time it seems easier, maybe even less stressful, to tackle what’s right in front of you instead of worrying about some distant future.
But when it comes to your money, a little future planning can go a long way in relieving stress, achieving your goals and protecting what matters. So here's five quick money wins you can do for your future self…
1. Reap the benefits of compound interest
Yep, we’re talking about pensions. In the UK, everyone is entitled to a state pension, but if you want a bit more control over your retirement plans, it’s worth investigating your options. Even if it’s not much, putting aside some of your budget for a monthly pension contribution can help strengthen your financial future. And thanks to compound interest (that’s interest you earn on top of the interest you’ve already built up) the sooner you start, the better.
From busting pension myths to tips on getting started, our friends at PensionBee have some brilliant resources on their blog, but Steve Webb, Royal London’s policy director, sums up his pension tips this way: “Start as quickly as you can; up your contributions when you get a pay-rise; max out on what your employer will give you by putting more in.”
2. Set a money goal and visualise it
Whether you’re dreaming of a once-in-a-lifetime holiday or buying your first home, life goals often come hand in hand with budgeting and saving. Whether you're more into vision boards, lists, or money apps, using tools to visualise your goals can help bring them to life. After all, what feels better than checking in on your savings account and seeing that number on the rise or ticking a bunch of items off your list? It's like they always say, seeing is believing.
3. Build up a good credit score
Your credit score can impact many parts of your life, in the present and the future. In the here and now, it affects your spending power on your credit card. As for the bigger picture, it can play a part in everything from finding a new job to buying a car or your first home.
Get to know your monthly incomings and outgoings. That way, if you’re using a credit card to build up your score, you always know what you can afford and when you can pay it off. By paying off your credit card every month, it’s easier to avoid any credit hurdles with your future plans.
4. Practise money mindfulness
As with most things in life, building a good relationship with your money goes a long way. And that’s exactly what money mindfulness is – it’s all about uncoupling those negative connotations we’ve built up around money over the years and reforming that relationship into something positive. This isn't just about tackling money worries in the here and now – by adopting money mindfulness, you can set yourself up for years of positive money habits.
We actually have lots of tips on money mindfulness, but for a quick win, start by building money into your daily routine. Pick a time that works for you, whether that’s first thing when you wake up or Thursdays after work. Use that regular, dedicated time slot to get to know your money – check your total balance across your accounts, take a look at your spending patterns or set yourself some monthly budgets. You can do all of these for free with Yolt.
5. Look into home and contents insurance
In a survey with some of the Yolt community, we found that 15% were saving for a first deposit this year. But whether you’re planning on your first house or renting, it might be worth insuring your home, whether that’s the space itself or what’s in it.
We get it, thinking about insurance can be a bit daunting – it’s tough thinking far into the future to begin with, let alone planning for the worst. But if you’re already hard at work budgeting and saving for the things that matter, it can be worth protecting what you have – and future-proofing your plans, too.