Five ways to be financially fit and healthy In Debt Awareness Week (22-28 March) Rob Gardner, Head of Investment at St James’s Place, advises there’s no time like the present to take stock of where you are financially…

1

WISH YOU WERE HERE?

What are your goals? Are you saving for a house, or a holiday, or investing for a comfortable retirement? Do you have debt to manage? The first thing to do is understand where you are now. Make a list of anything you owe – store cards, loans, etc – as well as what you spend and earn each month/year.

2

DIG YOUR WAY OUT OF HIGH INTEREST DEBT…

By high interest debt, I’m talking about store cards or credit cards, not a mortgage against your home, which is your asset.

It’s all too easy to feel like you’re making good headway, paying off the minimum on those bills and watching your savings rise. But those store cards or credit cards are racking up interest, creating an invisible leak that’s probably costing more than you’re saving.

3 RAINY DAY SAVINGS…

Often, debt can happen because one of life’s bumps in the road comes along and suddenly, we have a big bill which we haven’t accounted for. We end up borrowing money with large interest rates or use pricey credit and store cards to pay for the rest of the month’s necessary purchases.

As soon as you’re debt-free, the goal is to start building a pot of money to use when the unexpected next happens. Everyone’s pot will be different

– it could be £500, one month’s salary or three – but, whatever the size, you should have a pot of money set aside for emergencies.

4

LOOK TO THE LONG-TERM…

The best way to start finding money you can set aside for the future is to differentiate between your ‘wants’ and your ‘needs’. Start with a ruthless analysis of what you’re spending. Go through your bank statement and direct debits, ask yourself if you truly need everything you’re spending money on. Cancel the ones you don’t and put that money directly into your savings.

5 YOU’RE GOOD TO GO…

By getting out of high interest debt, setting aside an emergency pot, and adjusting your spending to put towards investing into your financial future, you’re in tip-top shape. Having a plan, and following these steps, is the key to feeling confident about your finances. When it comes to saving and investing, there is no ‘I’ll start tomorrow’. Your future self will thank you for what you start today.