Getting To Grips With Your Financial Timeline

Tricia phillips tells you how to map out your money priorities

- Tricia Phillips

AS THE years roll by our lifestyle priorities change, and as we enter our middle years so do our financial priorities.

Having regular financial MoTs can help us all plan for a comfortable retirement and make the most of our savings.

Catherine Wray, senior savings manager at Leeds Building Society, says: “There is no doubt that we are living through very difficult times as we face into a cost-of-living crisis.

“Interest rates are rising, inflation is in double digits and the individual tax burden we all face is the highest since the war.

“This means that we really do need to plan our future spending and saving very carefully.

“The amount we hold in savings accounts tend to increase with age, so the sooner we can get into the savings habit, the better.”

IN YOUR 20s

In early adulthood, we are focused on building our careers and establishing financial independence.

During this time, most people will have opened a bank account and will be finding their feet when it comes to jobs and responsibilities.

Some will have been to university and for many this will mean that they are starting work with large debts. According to the Sutton Trust, the average graduate debt is now around £45,800, so paying this off as quickly as possible will be a main priority.

Many 20-year-olds will be juggling lots of financial priorities including renting or trying to save a deposit for a first home.

Some may even have returned to live with parents due to the high cost of getting on the housing ladder.

One of the primary financial goals in your 20s should be to build up an emergency savings fund. This fund should be able to cover at least three months of living expenses in case of unexpected events, like losing a job, illness or car repairs.