When you were given a gift of money as a child, were you the type who raced to the building society to deposit it, delighting in seeing your passbook balance grow? Or were you straight down to the corner shop to spend it on sweets, comics and toys?
The habits we adopt as youngsters often stay with us in adulthood.
If you often find that you have month left at the end of the money rather than money left at the end of the month, it’s not too late to get the savings habit. It is possible to live for today and save for tomorrow.
Step 1
Pull out your banks statements (open them - if you are the kind of person who likes to bury these things in a drawer) and take a good look at where your money is going.
- Do you have the most competitive deal on your mortgage? Reviewing your mortgage, particularly when a special deal has come to an end, could save you hundreds a year.
- Could you switch suppliers for your gas, electric, TV, telephone or broadband to save money?
- Have you got a subscription for a gym that you’ve hardly ever been to?
- Do you have the most competitive deal on your home insurance?
- Ladies - Did you really need those shoes? (Oh, okay – of course you did!).
Step 2
Think about what you’d like to be able to do in the future and when you will need money to do those things.
- New car?
- Holiday of a lifetime?
- Send the kids to university?
- Milestone birthday celebration?
Think about how much money you will need to achieve what you want in later life.
The average full time teacher will earn more than £1 million during their career. Remember, the amount you get to spend on the things you really want to do will depend on the financial decisions you make now.
Step 3
Decide how much you could comfortably afford to save on a regular monthly basis.
If you don’t have any money saved at all, it is useful to first set up a fund for ‘emergencies’. You should aim to keep an amount equivalent to at least 3 times your monthly outgoings in an easy access savings account.
Once you have established an emergency fund, there are a range of savings and investment options open to you for the longer term.
You might like to take a look at our Savings options:–
Alternatively, if all this sounds too much like hard work, why not request an appointment with one of our Financial Consultants who will come and help you work out where you can cut down on your monthly bills and what to do with the money you save as a result.
About Us
Teachers Assurance has been looking after the financial interests of education professionals and their families since 1877.
Our nationwide team of Financial Consultants have expert knowledge of the Teachers Pension Scheme. This means they are able to offer a retirement planning service that will take into account existing benefits, identify any shortfalls, and offer financial solutions to address them.
As well as retirement, our consultants provide advice on investments, savings and protection products and services from Teachers Assurance and selected third party providers.
To arrange to receive financial advice or find out more about the services offered by Teachers Assurance, visit www.teachersassurance.co.uk or call Freephone 0800 056 0563
This article contains information that is based on our understanding, as at 18 April 2010, of current taxation, legislation, Teachers Pensions and HMRC, all of which may change without notice. The impact of taxation (and any tax reliefs) depends on individual circumstances.
None of the information contained in this article should be considered as advice to save, invest or purchase. If you have any doubt as to whether or not a product is suitable for you, please ask us for advice. We are only able to advise on our own products and those of selected third party providers.
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