Marvin OnumonuAs the new year approaches, many people set ambitious resolutions, but making smart financial decisions should be a lifelong habit, says Chris Rudden, head of investment consultants at digital wealth manager Moneyfarm.
Rudden advised saving and investing 10% to 20% of salary each month, increasing the likelihood of retiring with £1m rather than nothing.
Following the 50/30/20 rule, Rudden recommended that those looking to save set out 50% of their income for necessities, 30% for wants, and 20% for savings.
Rudden also suggested staying on top of pension options, as it is easier to make small contributions now than larger sacrifices later, especially since many have multiple jobs over their careers, leading to ‘lost’ pensions.
Moneyfarm’s research found that the average Brit had about £13,000 across three lost pension plans, making the new year is a good time to track these down.
Rudden said: “Towards the end of every year people put an enormous amount of pressure on themselves to suddenly change everything come January.
“But it’s the everyday, little choices with your money that will be the cornerstone to lifelong financial wellbeing.
“At Moneyfarm, we believe that the key to achieving your financial goals is by spending time reviewing your current situation and then taking small but achievable actions.
“By consistently making manageable financial choices, over time, you can build a solid foundation for a prosperous future for you and your family.”
