I often feel like I should start a #talkyourmoney series because I have a huge interest in finance and enjoy learning new ways to do things. Firstly, I am no money expert but there are financial decisions I have made in my twenties that I do believe will be highly beneficial in the long run and since nobody is willing to talk about their finances, I'll start.
A few weeks after I turned 21, I carried out life insurance. As sad as it sounds , death is guaranteed and taking out a life insurance policy secures your insurability because life insurance rates are based on your age, gender, and health. So by taking a plan now, you can lock in at a lower premium rate for life.
Opening 3 separate accounts
As I have previously mentioned in my former blogs, I am keen to get on the property ladder as quickly as I can. In order to do this I have decided to delegate my finances into three separate accounts. One is a current account, another is a bills account and finally a savings account. I decided to sort out my finances on the earlier side of each month. I delegate 30% into the bills account, 35% into my savings account and the rest in the current account to live on each month. By distributing the money early, it allows for a more stable management and ensures that even if you go 'broke' in your current account, you've sorted out the priorities and you have saved.
Opened a Hargreaves Lansdown account
A wise man once said a river flows from 'multiple streams.' Having shares and investing in thriving companies has always sparked my interest however, as I am building the capital to do so I opened a Vantage Stocks & Shares ISA; with Hargreaves Lansdown ( HL) . I opened this when I was 20, mainly because I needed to develop a savings mechanism where I could transfer money into the HL account and because the account did not come with a cash card I would not be tempted to dip into those savings. You can indeed manage your account with HL using their online system, however funds take 2 days to withdraw if you need to do so therefore, it encourages you to use this account for emergencies. This is also great for reminding you that the money is for a cause ( build up enough capital for investment), so it keeps you going. You are under no obligation to invest the money you save into shares...you can withdraw the funds and spend them on an alternative venture.
4) Finally...dating rich men only.
These are a few of my decisions and I hope they have been an eye opener to some of you. Let me know some of the actions you have taken, and feel free to share some valuable tips!
Until next time,