Starting financial planning at an early age is key to developing good monetary habits – which can make all the difference in achieving future financial success. For people in their early thirties, this is the time to learn about finance and start saving for the future. Not only can seeking advice from a regulated professional improve your financial situation, but there are other benefits alongside that too.
Many young people are not aware of the importance of financial planning; they often think they will have a lot more money in the future. Not many like to think about the worst case scenarios or plan for a retirement that seems an awfully long way off. But the sooner you start planning, the better off you will be. Financial planning is a process which can help you set goals and work towards achieving them.
An adviser is an expert there to guide you. You will be able to make informed decisions that you might otherwise not have felt comfortable about doing, because of the gaps in your knowledge. And their specialist assistance and support can increase your knowledge enough to help you feel confident.
Financial information from the internet is going to be a ‘one fits all’ approach, which is not going to suit anyone personally. Advice from a professional is personal to specific circumstances and takes into account a holistic overview of each person’s unique situation. As well as being reliable and regulated, advisers must maintain a certain amount of hours Continual Professional Development each year in order to practice, so you can be assured that your advice is relevant and up-to-date.
Many Financial Advisers would have loved to have met their clients at an earlier stage in their savings because of compound interest. The earlier that savings begin, the earlier that interest is added, and that period of time of rolling up interest allows it to really grow. There is also then an opportunity to recover from any savings set-backs (like a sabbatical or redundancy).
Paying into a Pension from an earlier age means that each contribution can afford to be smaller, and yet still accumulate a significant savings pot. It may seem to young adults that their youth is a time where they have other financial commitments (possibly a first mortgage) and not a high-paying job, so there is not a lot of spare money each month, but paying early and consistently into a savings account for retirement will mean that the possibility of retiring can get earlier and earlier.
If you are unsure of how best to set yourself up for your future, then please contact us.
