We certainly live in interesting times. While once enjoying all-time highs, the pound is nearly on parity with the euro. Talks of a Brexit breakdown hang heavy in the air and inflation is on the rise. Employees are less satisfied at the workplace and many are just able to make financial ends meet. One of the reasons why this modern era is troubling arises from the fact that few individuals possess a “plan B” in terms of fiscal security. Such a financial parachute is absolutely essential and you might be surprised to learn that there are several viable methods at your disposal. If you are tired of living from payday to payday, please continue reading.
It is interesting that such a simple principle often falls upon deaf ears. One of the most common mistakes is failing to clearly construct a monthly budget. Setting timely spending limits is the first step towards gaining a bit of financial liquidity. Moreover, try to curtail fickle spending habits. Some excellent suggestions include:
- Taking a certain amount of cash out as opposed to relying upon a seemingly “unlimited” line of credit.
- Cutting down on the number of times you eat out per month.
- Putting a certain amount of money away every week into an ISA.
Although the concept of budgeting is important, this is only the beginning.
Address Your Pension at an Early Age
It is never too soon to begin planning for your retirement. In fact, it is prudent to begin looking at different plans as early as the age of 30. There is a very real reason why this is the case. Recent studies have highlighted the rather unsettling fact that tens of thousands of Britons are currently reaching the age of retirement without any form of a pension plan (1).
Not only is this a dangerous proposition from a personal point of view, but Britons are placing their loved ones at an equal risk. Appreciating the different plans currently on the market is the best way to make the correct choice at an early age.
Consider Spread Betting
Even the most generous ISA provides rather meagre returns in regards to interest rates. Although the tax benefits cannot be denied, we need to look beyond the horizon. We live in the digital age and there are countless opportunities to invest with the help of CMC Markets as well as similarly respectable online firms. Spread betting is one option, as this is a highly lucrative strategy. The ability to trade on margin, tax-free profits and rapid executions are three advantages not to be taken lightly. Other lucrative electronic investment opportunities include:
- Currency (Forex) trades.
- Contracts for difference.
- Blue-chip stocks.
- Index-based trades.
As always, it is sensible to examine each in more detail in order to understand which could be the best option for you.
Growing Your Nest Egg
Many financial experts state that you should set aside between five and ten per cent of your salary and that these funds should not be accessed unless absolutely necessary. While this may not appear to be much money, the truth of the matter is that even small allocations will quickly add up over time. Nurturing this nest egg will provide you with a greater degree of fiscal latitude in the future.
There is simply no reason why you should be subjected to entirely avoidable fiscal limitations. The suggestions mentioned above are all excellent ideas. Be sure to speak with a qualified financial planner in order to fully appreciate your options.