Committed Relationship (20-30)
You have found love and are now committed to a relationship. You want to build a future together. Are you looking into buying or renting your first home together? Or you may be planning, or have already started, your own family.
As you are now living with your partner, there are bills to pay and less money to spend on life’s luxuries. You may be thinking about saving for a wedding.
You have started forming a clearer idea of what you want to do with your life and where you want to be in regards to your career, goals and finances. Your financial need is no longer all about you and you have to start considering the needs of your partner and perhaps children; for instance, who would look after them if you are ill or pass away. It is probably best to help them prepare in a similar manner to make sure you are both covered if the worst does happen.
Protecting what you have
If you haven’t already, you need to take time in ensuring you and your partner are protected with life insurance, but most importantly; income protection or critical illness cover to ensure the bills can still be paid if you are unable to work due to illness. Living independently is hard and there is nothing worse than being unable to pay the bills. This protection will offer an income if you are unable to work.
Planning for the future
Opening an independent savings account (ISA) will help you save for those big spends and preparing for a rainy day. An ISA offers tax free savings with a good range of deposit on investment options. There are a wide range of ISA’s to choose from.
Pensions are also a key aspect to consider to ensure you have a significant pension pot by the time you retire. When paying into your pension you receive tax relief on contributions you make. Starting now will offer you many more years to grow your pot which will make a significant difference compared to those who start later in life. You may consider opening a private pension and/or enrolling in a work pension which offers employer contributions.
A financial adviser could help in assessing your needs, helping you decide what is most important to you and your partner. Making the right decisions now can provide financial security that can last a lifetime.
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