Stop writing your bucket list and start saving for it
Tuesday, May 2, 2017
We all have goals and aspirations; things we have always dreamed of doing or hope we could experience in our lifetimes. For some it’s travelling or going on an amazing cruise, for others it might be purchasing a holiday home abroad or adventurous experiences such as sky diving or a bungee jump. Whatever dreams and experiences we hope to achieve, chances are, most of them will need money to fulfil them – and having a savings plan in place can help to ensure you get there.
This article looks at money-saving tips and options that can help you to fulfil your bucket list:
- Set a budget for each item
Dreams of what we hope to achieve are great, but it’s equally important to be realistic and find out what you can afford to do now and how much you need to save. Do a bit of research and find out how much each item on your bucket list is roughly going to cost. You’ll soon be surprised how much extra money you’ll need to save to achieve everything on your list.
The cost of debt is usually much higher than the benefit gained from savings, in that the amount of interest you are paying on your debt is often higher than the interest or bonuses you would earn through saving, so it makes financial sense to pay off any debt before you start saving. See how paying off a credit card debt can help you start saving.
- Turn extra income into savings
If your salary increases, make sure your expenses don’t. And if you come into any money from inheritance, selling high value items or premium bond wins, you could add it to your savings account or ISA straight away before you even have a chance to spend it.
- Review your savings account
If you’ve had the same savings account for a while it might be worth shopping around because new customers tend to get the most competitive rates which could give you that little bit extra towards your bucket list savings. You may also want to consider transferring your savings into an ISA because you will benefit from tax-free savings up to a maximum of £20,000 in the current 2017/2018 tax year.
- Create a diversified investment portfolio
Educate yourself - or speak with a financial adviser - on the different investment platforms and how they can be beneficial to you. Spreading your money across different kinds of investments (ISAs, gilts, shares or property) can help to minimise risk and means you could still benefit when certain asset classes fall whilst others rise.
Foresters Friendly Stocks & Shares NISA
We offer a Stocks & Shares NISA, into which you can invest up to £20,000 during the current 2017/2018 tax year, provided you do not already hold another Stocks & Shares ISA with another provider. You can cash it in whenever you want, and make regular (frequent) and partial (one-off) withdrawals from your NISA should you wish to access your money. It could be an ideal savings method that will allow you to start ticking some items off your bucket list in the not too distant future!
- Depending on how long you’ve had the plan and when you withdraw money, as with any investment linked to the stock market, you could end up getting back less than you put in.
- Withdrawals are subject to minimum amounts and cannot be replaced; any replacement would count towards your annual ISA limit.
- Tax rules may change and depend on individual circumstances.
If you are interested in taking out a NISA, download our application form here >>
Spending some time to create a clearly budgeted bucket list that is personalised to your own financial situation and goals will ensure you start setting enough money aside to achieve your dreams and ambitions.
The content of this article is for information purposes only and does not constitute financial advice. We do not offer financial advice. If you're unsure as to the suitability of a product you should seek advice from a Financial Adviser. You may have to pay for this advice.