Your finances and what you want from them can be dramatically altered by a change of circumstances, whether good or bad. From unemployment to parenthood, life events can pose new challenges when it comes to managing your money.
David Gow, a director at Acumen Financial Planning, gives some advice on ten financial life events.
1. Leaving the nest
Leaving home is a huge milestone in anyone’s life – and brings many responsibilities, including managing household expenses. Not creating a budget is the most common mistake people make in managing their money. Putting together at least a basic record of how much you’re earning and where it’s going is the first and most important step in assuring financial security.
2. Promotions and bonuses
As you climb the career ladder, your bank balance should benefit. Try to resist the temptation to blow a pay rise on material possessions; rather, plan ahead for your future. The earlier you start saving for your retirement, the easier it will be thanks to the wonder of compounding – receiving investment returns on returns already made.
