Planning For The Future

At home office

At home officeOn the 4th of August I turned 30 and it really has me thinking how I need to start planning for the future. I have lived by myself now for the last 14 years, so I kind of have adulting down to a tee but there is always room for improvement when it comes to the future, especially your finances.
I am self employed which I absolutely love. This however does come with a downside as you don’t have a regular steady income and I shall admit some months are really hard, where others are absolutely great. So with a little careful planning I can live a good life, keep on track and prepare for the future.

Savings

Every time I get paid for work I put 40% aside. This means I have money for any taxes and national insurance I have to pay, along with extra money for if I have a bad month. This really helps me keep on track of things, knowing I always have money to pay my rent and bills.

Stay Away From Lending

I’m not opposed to having a credit card or getting a loan but, I don’t think they come in handy if you are using them as a source to live. I have a credit card at the moment and I never make daily purchases on it, it’s solely for emergencies or a huge purchase. The reason why you shouldn’t use it for everyday purchases is the fact that if like me you don’t have a steady income you could end up getting in debt as you can’t repay what you owe. Plus, you can start living well beyond your means.

Start Saving For Your Pension

I know when you’re young you don’t really think about your pension but, it is something we all should be thinking about no matter what age we are. We need to plan for our future so we can enjoy it when we are older. Remember your pension helps you to pay everything you do now but without your wage, so finding a good pension to pay into is something we should all start looking into.

Getting On The Property Ladder

This is something we are so desperately wanting to do but, in the area we live in at the moment we can’t. The house prices have skyrocketed over the last few years. I remember my Nan telling me that when she bought her house it cost less than £10,000 and now it is worth substantially more – You can check how much your property has made since it was bought with this handy checker from Sunlife. We are looking to move out of London to a more affordable area over the next few years to allow us to be able to purchase a property of our dreams. This will also make sure we have something secure for when we are older.

I feel like I have really got to grips with being self employed now, especially when it comes to preparing for my future. There are just a few little stepping stones to go but, if I keep budgeting and saving how I am then when I’m ready to slow down a bit I should be able to.

 

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10 Comments

  • Reply Kiki

    It’s definitely so important not to have to borrow to live, great post!

    K x
    http://www.highstreetcoutureblog.com/

    August 11, 2018 at 3:36 pm
  • Reply Treasure Every Moment

    You know you’re an adult when you have to be thinking about these things, don’t you? I find it really important to consider the future when making decisions, especially financial ones 🙂

    August 15, 2018 at 8:16 am
  • Reply Abbi

    Welcome to the 30s club! It’s definitely smart of you to start thinking of these things now.. i am surprused at how people just delay these habits to when they are much much older. It will pay off later in life. xx

    August 15, 2018 at 8:42 am
  • Reply MELANIE EDJOURIAN

    I agree it’s not good to live on credit cards. People that do that find they spiral quickly into debt.

    August 15, 2018 at 5:55 pm
  • Reply Samantha Griffiths

    I turn 30 in a couple of years and I really want to buy my own house before then. Being a grown up is to hard sometimes though! I know I really should be saving for a mortgage but all I want to spend my money on is holidays and weekends away

    August 15, 2018 at 9:39 pm
  • Reply Jenni

    You are really good putting 40% to the side, very organised. Starting a pension early is a must too x

    August 16, 2018 at 9:44 am
  • Reply LaaLaa

    Planning for the future is so important and I think it’s important to get that drummed into you from young, it’s not easy but it’s essential

    August 16, 2018 at 1:24 pm
  • Reply Mellissa Williams

    It’s hard work putting aside money for tax and national insurance isn’t it, but it has to be done if you are self-employed. I have a higher interest savings account which is my fall back. It’s reassuring to know its there. I am also paying towards the mortgage with my husband. Another 8 years and it will be paid

    August 16, 2018 at 2:31 pm
  • Reply Kirsty

    I must admit whilst paying into a pension can seem like a waste of time, it’s so important for the future. One good thing about working in the nhs is the pension scheme they have I’ll admit.

    August 16, 2018 at 7:51 pm
  • Reply Leigh Travers

    This is a great post! I can’t imagine how difficult it is to be freelance so keeping 40% aside is a great tip!

    August 16, 2018 at 8:21 pm
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