Amazo
CASH SMART
YOUR AUTUMN Turn over a new leaf and confidently tackle your financial worries. Sarah Pennells reveals how to squirrel away your cash
THE PROBLEM:
THE PROBLEM:
I ’ LL N E VER G ET OUT OF DEBT
WHAT IF I LOST MY JOB TOMORROW ?
S A R A H S AY S :
Being in debt can be scary. But the longer you ignore the problem, the fewer options you’ll have. If you’re behind on your rent, mortgage or household bills and can’t clear the arrears in a month or two, get some help. Use a debt advice charity such as National Debtline or Citizens Advice. Don’t think they’ll judge you – they’ve seen it all before. If you can manage the important bills, but owe money on credit or store cards, it’s best to pay down the one charging the highest interest first. Pay the minimum on the rest and work your way down until they’re all paid off.
S A R A H S AY S : Losing your job can be pretty frightening, but it helps if you have some money to live on while you look for a new job and a plan to help you get there. Experts say you should try and save three months’ living expenses, but that’s not realistic for everyone. My advice? Save what you can. And make sure you know your rights. If you’ve been made redundant, you may be due redundancy pay. And if you’ve been fired unfairly, you may have a claim against your employer. Your local Citizens Advice Bureau can offer free, confidential advice.
THE PROBLEM: IT’ S TOO L ATE TO START MY PENSION!
THE PROBLEM:
S A R A H S AY S :
I CAN ’T AFFORD TO SAVE
While it’s certainly never too early to start saving for your retirement, it’s never too late either. If you save nothing, you’ll have to live on the state pension, which – under the new system introduced in April – is £155·65 a week at the full rate. Most new starters will be enrolled automatically, but if you’re not already part of it, it’s a good idea to join your workplace pension as your employer will pay into it on your behalf. If you’re selfemployed, you could pay into a scheme yourself, or, if you’re
ILLUSTRATIONS LUCY ROSE CARTWRIGHT
S A R A H S AY S :
With money, there are two types of people: those who find saving easy (they feel insecure without savings) and those who don’t. If you’re in the second group, try to focus on what saving will let you do, rather than on what you’re ‘giving up’. Set a goal (such as a holiday, wedding or house deposit) and track your progress. Open a savings account, one that makes it hard to get at the money if necessary, so it’s ringfenced. If you get a pay rise or a regular bill goes down, increase what you save.
between 18 and 40, you could open the new Lifetime ISA, due to be introduced next April. Don’t let starting late put you off. As the saying goes – every little helps! Plan how much you need to put away. You can use a free calculator, such as the one on moneyadviceservice.org.uk, to work out how much you’ll need to save each month.
Get thrifty Having trouble saving? Try our easy tips at tes.co/ moneysavingtricks 97