You should be saving from a young age

The message from 20 year old Accountancy and Finance student Rhodri Goodfellow, who has been with Bartholomew Hawkins on work experience two weeks, is to start saving from a young age. Read on to find out what he thinks...

by Tracey Morris | 22nd July 2014

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Written by Rhodri Goodfellow 22nd July 2014

 

Coming out of University....full time employment....a disposable income, you can do what you want with your hard earned cash. Before going wild with your new found riches I believe it’s best to take a step back and think about what the smart thing to do with your money is.

 

Needing to take greater care of your money 

Reading through the news and researching into recent events showed me that if the financial world continues in its current trend you may need to take greater care of your money at a younger age than previously thought.

 

I came across an article which included some research by KPMG (in the FTAdvsior) which stated that half of all young adults (20-34 year olds) may be living with their parents!

 

The cost of living 

Furthermore, this article also went on to say the average house price in Britain could reach £900,000 by the year 2034, £900,000? Let’s put that in some perspective, that’s like paying for your University fees 100 times over, 2250 of the new Xbox’s and 600,000 pints on a student night.

 

With current house prices at £270,000, this means an average increase of 6.2% year on year. With wage increases currently at about 2.5% you can clearly see a shortfall arising. 

 

Speaking from a personal point of view, I have only just finished my second of four years in University but I have a few friends who are in full time employment and have a real mixture of ideology within the group of what is best to do with your money.

 

Although doing what you want to do in your younger years is important and of course if you have the funds to experience things on your own bucket list go do it!

 

A wakeup call?

Being 30+, with no real savings and living at home would potentially be a bit of a wakeup call for me, and I don’t think I could cope with mum still telling me to tidy my room!

 

You can’t completely avoid what is potentially around the corner and finding ways to help you become more independent is definitely something which I think is wise.

 

Start saving early 

Saving a little each month as soon as you start working is a way to starting investing in your own future, having some money available for when you want to move out is a smart move in my book.

 

I would consider setting yourself a monthly target for saving and try your best to stick to it, or even set up a direct debit which takes a specific amount out of your account each month. 

 

This article is for information only and does not constitute financial advice. Please contact your usual adviser at Bartholomew Hawkins Chartered Financial Planners if you have any questions relating to your own personal circumstances. Contact details can be found on our Meet the Team page on our website http://www.bhifa.co.uk/meet-team/ . The Financial Conduct Authority does not regulate tax advice.

Tracey Morris

Tracey Morris

Marketing Manager

Tracey is responsible for marketing, PR and brand for Bartholomew Hawkins managing campaigns across the business.

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