Invest to save ?
Invest to save plans are great if you are working as a contractor or self employed it’s definitely long term and you can’t access your money quickly. I don’t know how reliable they are for an individual especially if you don’t have dependents. I would suggest however that you have a long term plan whether it be property, stocks and shares, bonds etc.
Maybe you can use the little that you’ve saved to give yourself some sort of long term cushion or at least a plan towards it. All I know is that the first 2 years of a mortgage take adjustment and you have to be aware of the changing interest rates which quite frankly I find boring. Also know all of that money that’s taken out for your pension is great in the future but, Pensions aren’t going to kick in any earlier if you need it!
Don’t be afraid to invest with family or friends either. It sounds counter intuitive as lots of advice says you should never go into business with friends or family. This is merely a way of pooling your money together to ensure security. Just make sure that you both are clear on the terms and if they’re in a relationship then know that their partner will possibly want to grab what’s nothing to do with them. That is the biggest risk!
Investing with a partner you’re not married to can be legally messy so one that I’d avoid. The idea is to give you stability in the future so that doesn’t work when you’re dealing with a breakup. My rule of thumb is never invest more than you can afford to walk away from.
That’s my quick whizz through. The main thing is to make it fun and collective if you can as this will keep you motivated. Don’t let it take over your life and enjoy all of the Youtube videos out there on how to save. Who knows, maybe you’ll make money by becoming a youtube star.
© Chelsea Black 2020