Zurich UK research recently found that 15% of millennials simply turn to google to get their finances in order, rather than seek financial advice, and despite a clear desire to take charge of their financial futures, more than half (56%) of those aged 18-34 blamed a lack of savings for preventing them from achieving life goals, such as starting a family or travelling the world.
Here’s Zurich’s 5 financial tips to help millennials meet their financial life goals.
- Be clear on what’s coming in and going out
With so many bills to pay each month, it can be difficult to keep up with how much is coming in and out of your account. You can keep up-to-date by creating a spreadsheet or by using one of the many apps in the market that help you do this. Having everything saved to the cloud or a document that lists everything in one place will also help you to spot where you can make cutbacks. If you’re unsure about how to get started then there are many tools available online to help.
2. Don’t spend what you don’t have
Even small over spending – having your eye caught by an extra 25% off or two-for-one deals – can build up and have a real impact over time. While it can be tempting, try not to go into your overdraft or use credit unless absolutely necessary. Aim to cut back and, for example, buy the dress but not the bag, or cook more at home rather than eating out. If you start making these little savings earlier, you will achieve better results in the long-run.
3. Do a financial MOT
Consumers have many financial products from utility bills to car insurance and mobile phone contracts. With many, it can be difficult to keep track of how much you’re spending and when each policy is due to expire. By not knowing when your car insurance is due, you might end up being auto-renewed into a more expensive contract that can then be difficult to change at a later date. To save even more, use price comparison sites that compare all providers and give an overview of the best prices. The money saved could be used for other essentials or even put into a saving account.
4. Make the most of tax efficient savings
Saving for your pension may not be something you are thinking about now, but if you don’t you could be missing out on free money as the government essentially gives you money every time you pay in. For example, if you’re 30 and start saving the equivalent of just £10 a week more into your pension now, by the time you’re 65 you’ll have £48,400 more stashed away (equivalent to £20,400 after inflation) – and that’s before you factor in any added employer contribution you unlock. In addition, each year we also all have over £15,000 worth of tax free savings capacity in ISAs which can often offer attractive returns.
5. Think about your future
Do you know how much you need to save each month to achieve your ideal retirement? If not, don’t fear, you’re not alone and there are tools available to help. With interactive tools and personalised methods of planning, you can match savings plans with individual aspirations. Some even help you to visualise what your future could look like –https://futureyou.zurich.co.uk/life-planner.