Five top financial planning tips
1. Make a plan
While many young people may think that financial planning is something to think about in later life, they are likely to make themselves worse off by leaving it on the backburner. Getting professional advice can be invaluable in the early stages of adulthood. The starting point is to set out financial goals and objectives – this could include short-term aims like setting out a schedule to pay off a student loan to mid- and longer-term objectives like putting the required funds in place to make a start on the property ladder or to help with starting a family
2. Maximise workplace benefits
In addition to salary, it’s important for young people to explore other income-related benefits in their first job. A great starting point here, and one I would urge them to explore, is to join their employer’s pension scheme – bearing in mind that your employer will contribute to your pension too – and to also take an active interest in where it is invested to help ensure the best possible return.
3. Save little and often
While it is often a challenge for many people in their first job to find surplus income every month, it’s important to start a regular, affordable savings plan and try to commit to it. Just a few pounds saved each week or month can add up and, by starting this process at the earliest possible age, they could build a significant nest egg when they are still relatively young
4. Surf wisely
There is a lot of financial information available on the internet, which can be ideal when seeking money tips, savings ideas and options. However, it’s important to proceed with caution here as the web can offer a platform for less scrupulous individuals and firms who falsely parade as financial experts when they are anything but. It’s important that only advice from reliable and compliant sources is followed.
5. Get Advice.
Young people should get the ball rolling by speaking to an independent financial adviser (IFA). There’s no upfront cost for an initial consultation and they can guide you through the sometimes complex field of retail investment. You can find a local IFA and check their qualifications through websites including www.unbiased.co.uk
• Shane Presley is a financial planner at Johnston Carmichael Wealth