QuidCycle has promised to help young professionals this week and that is exactly what we are doing. Right now you have a whole life ahead of you and thoughts of getting your own house, investing and even planning for your retirement have edged that bit closer. To help you on your way, we have a few tips that could shape the rest of your financial life.
1. Spend Less than You Earn
Sounds obvious but you would be surprised by the number of people that don’t do this. If you spend more than you earn then there is little to no chance of saving up for that dream house. You may be destined to live with your parents who constantly asking you to do the washing up! If that isn’t enough of an incentive to curb your spending, I don’t know what is. If you do find yourself with very little spare cash, try tracking your spending for a week and see where it’s disappearing to.
2. Get on the Investment Train
The magic of interest means that when you invest your money, you earn by literally doing nothing. Follow the above suggestion, free up some cash and start putting it into a place where you can actually earn using your money! Start small each month and without even realising it, you will have compiled a much larger pool of cash. I have been told over and over again by the older generation to start saving and investing early. It will honestly transform your life in the future. Our Regular Investor product can help you achieve your investment goal.
See how much you can invest with QuidCycle here. Your capital is at risk with peer-to-peer lending.
3. Don’t spend money you don’t have
If you have your eyes on a prize, save for it. Taking out credit results in spending money that you don’t actually have and can be a very risky option. Remember that any money borrowed will have interest charged on top. It also puts you in a situation where you have to pay the money back. Any missed payments will stay on your record and these may affect your credit score along with your ability to take out a mortgage. It’s not worth it!
4. Don’t rush into buying a property
Whilst buying a property makes more sense than renting in the long term, be sure that you are in a comfortable enough situation to do so. Establish a steady income and be sure that you have found the right place and the right person! Buying and selling houses can be an expensive business and having to sell at the wrong time could set you back a few years financially.
5. Invest in yourself
After investing your money into a safe fund to start earning interest, have a look at how you can invest in yourself. Gaining skills, experience and knowledge while you are young will only do you good. Whether it is shining in a job interview, navigating through a sticky situation or completing a pub quiz in a clean sweep - learn as much as you can, while you can.
We hope that this will help some of you younger QuidCyclers and give you the tips to stay on the right path to financial success. Go forth and be savvy!
Disclaimer: The above information does not replace financial advice. Please ensure you seek independent financial advice before making any decisions regarding your finances. We also recommend that you carry out your own research to ensure that this is right for your own unique circumstances.