Safeguard your future with just Â£50 a month
It is never too late to start saving for your future. The little that you can spare can go a long way.
05:52 20 March 2014
It is never too early to start saving or investing your money. It does not matter whether you have a stack of money or just a little bit left over at the end of the month if you are thinking about the future, every little bit will count.
You can start saving for your retirement or your children's future university fees by investing £50 a month. Granted, you cannot expect to have a lavish retirement with £50 a month but it is a start, a small commitment that you might at some point add onto. Besides if you kept saving that much for 25 years at a growth rate of 5% per annum you might end up with almost £30,000. Doubling your saving will help you reach your goals faster. It might take some time to get used to seeing money leave your bank but after a while you won't miss anything.
Here are some ideas on how you can find that £50 you can start your retirement fund with:
- Start making some changes by dealing with your debt by cutting out your overspending.
- Start paying off your expensive debt like your credit card.
- Open a savings account; you should be able to save at least between £1 and £25 a month.
- If you are a taxpayer, take out a cash ISA and enjoy your interest without worrying about tax. Investing inside your annual tax-free ISA allowance will help you to avoid capital gains tax and income tax.
- Investment portfolios are not meant just for people with big money. Dare to be more ambitious with your money. Spread your money between different funds, countries and funding platforms.
Investing is a long-term goal, so look at boosting your savings with time. Take risks but work out the levels you can go down to.