4 Money Myths You Should Ditch This Year
We're all looking to save a bit of money, but we want to enjoy what we earn as well. It can be far easier said than done, especially now during the cost of living crisis and energy bill price hikes.
With that in mind, here are a few things to consider when your financial situation is getting you down. If you need more in depth advice, then make sure to seek the help of a financial adviser, I'm not qualified to help with more complex issues.
1. There's no point saving small amounts of cash
No matter how much you save, you'll find it makes a difference. I save as much as I can when I get paid, because I know I'll just spend it if I don't put it into a different pot at the beginning of the month. Anything that's leftover at the end of the month, I'll move to my savings account as well, even if it's just £20.
If, however, all you can afford to put away every month is £20, then please set it aside. If you do this every month, you'll have £240 at the end of the year. You could use this to buy Christmas presents or put towards a holiday. Save whatever you can because it'll be worthwhile over a few years.
2. I don't need to think about retiring, I'm too young
From the minute you land a job, you need to start thinking about retirement. I've had a job since I was 19. I'm now 27 and I've been putting money away for retirement since then. I know it might seem like a pointless task for our generation, but putting as much money away as you can towards your retirement is paramount, especially as it's done before tax.
You'll be able to offset how much tax you pay if you bang more away in your pension. But make sure to do the maths. If you can't afford to put more away, then don't until you're earning more. But no matter how young you are, if you start a job, you need to pay into a pension from day one.
3. A will isn't necessary yet
Wills are the key to ironing out any financial issues should the worst happen. You will need a will whether you own your own house or still live at home. If you have savings and assets, then you'll need a will to make sure everything goes smoothly for your loved ones during a time when they need things to be as stress-free as possible. A will isn't just something that older people need, if you have possessions and.or some money behind you, then I recommend having a will written up.
4. All debt is bad
No one wants to be in debt, but some debts are necessary. For example, we have a mortgage and student loan to pay off. I don't see this as a "bad" debt. I see it as something that most people have and I don't really worry about it. Like paying the bills, paying a mortgage is compulsory and you don't have any control over it.
There are loads of different debts that aren't "bad" debts, like paying off a kitchen that was bought on finance or paying monthly for a car. Don't go around thinking that, just because you owe an organisation money, it's a bad thing. Lots of people are in the same position, so it's incredibly common. Just start as you mean to go on :)
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I hope you enjoyed this blog post and found it a little bit reassuring around this time of year? I'll see you again very soon with a brand new blog post :)
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