LIVE FOR TODAY, SAVE FOR TOMORROW
Mindfulness is all about living in the moment and not spoiling the “here and now” by worrying about tomorrow or dwelling on the past.
If you’re a “live for today” person, then the idea of saving for your pension pot may not come naturally to you. While I don’t believe in scrimping and saving in the present in order to try and build up a pension pot for many years down the line, nevertheless, it is worth starting to put something away as early as you can. Plus you’ll get a hand out from the tax office – a rare thing in itself! – as you will get a 20% boost with tax relief, if you’re a basic rate taxpayer, on anything you pay in.
It’s the same with savings. Spending everything you have each month is all well and good, but what happens if the car breaks down or the washing machine packs up? Far better to have some money put by than have to go into the red and pay bank charges or rely on a credit card that you’ll struggle to pay off.
Yes, savings rates haven’t been great for a long time, but isn’t it better to get something rather than nothing? If you have £500 in savings, you could make a miserly 50p a year, which is less than the rate of inflation, by leaving it in a low rate account, or it could earn you £25 a year with an account paying 5%.
What about those rainy days?