While the economic climate in the UK remains decidedly strained, April saw wage growth outstrip inflation for the first time in a year. Although this represents good news for households, inflation remains disproportionately higher than earnings and this is unlikely to change decisively any time soon.
This is making it hard for citizens to save their hard-earned money, which in turn is having a detrimental impact on those who wish to build towards their retirement.
Make no mistake however, saving while in work represents the single most effective way of achieving future financial security, so it’s important to retain a proactive approach when facing this challenge. In this post, we’ll offer some advice on how to save when working while also managing your real-time finances effectively.
1. Make Budgeting your Watchword
This may be tried and tested advice, but there’s a genuinely good reason for this. Budgeting is key to all successful financial endeavours, whether you’re building towards a big-ticket purchase or hoping to optimise your disposable income level each month.
With a consistent approach to budgeting that deals in pence rather than pounds, you can measure your income against your outgoings and determine the precise amount of money that you have spare each month.
You can then strive to commit as much of this to savings and investment accounts as possible, without compromising on your ability to pay bills. So, regardless of your precise financial circumstances, you should be able to save a small amount of money each month.
2. Partner with an Expert Financial Planner
If you’re willing or able to invest in your financial future while in work, it may also be worth partnering with an expert financial planning firm such as Tilney.
This serves two key purposes. Firstly, it helps you to gain a clearer understanding of your precise financial objectives, whether you’re looking to accumulate wealth or simply make the most of the capital and assets that you already own.
Secondly, a financial planner will help to plot a clear path towards growth and attainment, providing you with actionable steps to achieve each individual goal.
This type of expertise is crucial, especially in a climate where it’s difficult to earn or save money at the requisite rate.
3. Consider Adding New Income Streams
On a final note, you could also consider seeking out additional sources of income during your career, so long as this does not impact detrimentally on your ability to perform a day job.
You can achieve this through freelancing, for example, as you look to sell your marketable skills through the gig economy and earn money in addition to your annual salary.
If this is not a viable option, you may want to appraise the passive income streams that are available in the modern age. These range from real estate to investment, with various options to suit your precise circumstances and existing amount of starting capital.
This may not be suitable for everyone, but it’s certainly a viable option for those of you who are organised, motivated and committed to optimising your earnings while in work.