On 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.
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.