Managing your money effectively helps you avoid stressful situations, such as getting into debt, or running out of money so you can’t pay for things. It helps keep your money safe – for example, in a bank account.
Managing your money is an important life skill, and includes keeping your money safe, making sure you have at least enough to pay for your needs, and staying in control of any payments you have to make.
In the UK, 43% of retirement income comes from company pensions and 40% from state pensions/benefits. Saving early into a company pension gives your investment more time to grow.
In the UK, the average monthly outgoings for the over-55’s are currently £827. This may rise in the future as living costs rise.
In the UK, 2 in 5 of current retirees did not prepare enough financially for retirement. Of these, 2 in 3 didn’t realise this until after they’d stopped working.
Once you’ve found a house you’d like to buy, make an offer (subject to survey and getting a mortgage), apply for your mortgage, and get your solicitor to do the searches and legal work. When all this is done, you can move in.
When buying a house, consider the local amenities, transport links and school catchment area in addition to the list of wants your new house should satisfy.
When asked what was the best financial advice they have ever received, 63% of retirees said “Don’t spend what you don’t have”, “Start saving at an early age” (56%) and “Buy your own home as soon as you can afford to” (55%).
The costs for moving house include: a mortgage fee, mortgage valuation fee, estate agent fees, solicitor fees, stamp duty land tax and removal van costs. Get financial advice from your mortgage lender before you start.
The first step in buying your first home is to find a mortgage and get an Approval in Principle. The amount of this loan, plus whatever money you can put towards it, sets the upper limit of what house you can afford.