When you’re young, having fun and enjoying yourself, it can feel like you haven’t got a care in the world and nothing to worry about. But, the future can creep up on you before you know it and with young people struggling to buy their own houses and needing so much more for a comfortable retirement than previous generations have, it’s never too early to start thinking about your future. This doesn’t mean you need to stop going out or saving like mad. But, there are a few investments for your future that you should consider making as soon as possible.
If you are in your early 20’s, retirement can seem a lifetime away. It is really if you think you’ve got at least 40 years to work first. It’s a long time. But, it’s never too early to start setting some money aside. We’re living a lot longer than we used to, so post-retirement you could have a good 20-30 years. We’re also staying much healthier for longer. So, you’re not going to want to be sitting at home wallowing in your old age. You’ll want to stay active, go for lunch with your friends, see the world and generally keep enjoying your life. Yet the current maximum state pension is only £122 a week. It’s just not enough to have a fantastic quality of life. So, open a savings account and start making cutbacks now. It can even be worth looking a little further ahead at Co-operative funeral homes so that you don’t burden your family when the time comes.
Our parents and grandparents bought houses as soon as they left home, renting was uncommon, and a working couple had no problems saving a deposit and securing a mortgage. It’s much harder now. House prices are much higher and banks and much more reluctant to lend. This means that renting is very much the norm for young people and only 35% own property at 35. This means that even married couples with children are wasting money on rent. The same people could still be paying their mortgage off when they retire. To avoid this, start saving for a mortgage now, even if you’ve got no plans to settle down. Owning your own house saves you money in rent and gives you greater financial security and more options in the future.
If you left school at 18 or even graduated with a degree you don’t use, don’t worry, it’s not too late. It’s unrealistic to expect 16-year olds to know exactly what they want to be for the rest of their lives and plan their education accordingly. But, you can always return to school when you do figure it out. If you’ve been away from education for a while, online study can be a great path forward, and further education is never a waste.
Investing in your future doesn’t have to mean that you settle down and have it all figured out. It just means that you’ll have more options later on.