more into a pension<\/a>.<\/p>\nBelow are the tips Sarah, who grew in Lincolnshire and now works as a remedial hypnotherapist, would pass on through her own experience.<\/p>\n
Pay into a pension as early as possible \u2013 it could earn more than you do<\/p>\n
\u201cInvest in your pension as early as you can. The pot I started in my 30s earned more than I did last year, even though I stopped contributing in 1995,\u201d Sarah says.<\/p>\n
She says she wishes she had started paying more into her pension earlier but at the time she could not afford to.<\/p>\n
You get tax relief on your pension at your marginal rate, meaning there are large benefits to doing so.<\/p>\n
The earlier you pay in, the more you benefit from compound growth, whereby your pension is invested and grows, and then you get further growth on the already grown pot.<\/p>\n
\u201cI think pensions are the best thing to invest in. I know it seems far away when you are in your 30s, but a pension really is the best place to put your money,\u201d she says.<\/p>\n
Make sure you have the right type of life insurance or cover<\/p>\n
\u201cMake sure, if you have dependants, you have cover that will pay out for them,\u201d Sarah says.<\/p>\n
\u201cIf you were taken out of the picture, you need to replace that income, but a lot of people neglect it,\u201d she says.<\/p>\n
\u201cFor me personally, I have my partner and no dependants, so we\u2019ve left everything to the other. I\u2019ve decided there\u2019s no point in having really enhanced cover that is obviously much more expensive. That extra money can go into savings instead,\u201d she says.<\/p>\n
Different insurance products that cover your earnings and wealth are available from insurers, but to make sure you are picking the right one for you, it may be worth seeking financial advice.<\/p>\n
Sleep before deciding on a major expenditure<\/p>\n
\u201cThis is based on my personal experience, yes,\u201d she says.<\/p>\n
\u201cIt can be anything, but if you are thinking, I\u2019m down, let\u2019s book a holiday, you often can wake up and think, I should not have done that,\u201d Sarah adds.<\/p>\n
\u201cDon\u2019t do anything on a whim, put your logical hat on first, and often sleeping helps that.\u201d<\/p>\n
This chimes with research from Nottingham Building Society, which shows that more than a quarter (26 per cent) of over-60s wish they had spent less on things they don\u2019t need.<\/p>\n
Overpay your mortgage when you can<\/p>\n
Mortgage overpayments can be a good option at the moment as homeowners look to offset the impact of higher interest rates.<\/p>\n
You don\u2019t pay interest on the amount you overpay, and the money you save often beats the returns possible in savings.<\/p>\n
But you should check the terms of your provider first, to ensure it allows overpayments and you won\u2019t face a charge.<\/p>\n
Sarah knows first-hand how valuable this can be from her work as a mortgage advisor.<\/p>\n
\u201cThe more you pay in at the start, the faster the amount you owe comes down , because you\u2019re paying off capital rather than interest,\u201d she says.<\/p>\n
\u201cAnd if you don\u2019t have a mortgage, save for a deposit instead. The faster you can get on to the property ladder the better,\u201d she adds.<\/p>\n","protected":false},"excerpt":{"rendered":"Sarah Wellband spent years in the finance industry and is sharing her top tips for the younger generation…\n","protected":false},"author":2,"featured_media":170355,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,25949,4178,4174,4175,56,54,55],"class_list":{"0":"post-170354","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-mortgages","11":"tag-pensions","12":"tag-personal-finance","13":"tag-personalfinance","14":"tag-uk","15":"tag-united-kingdom","16":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/170354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=170354"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/170354\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/170355"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=170354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=170354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=170354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}