Five of the best personal finance tips from the experts

Financial advice can come from a range of sources, including friends, family, the internet and financial advisors.

Depending on where you are in your life, your financial needs will be different and so too should your investment strategies. Speaking with a registered financial advisor can help you to make the best choices for your personal situation.

That said, there are some great tips that can help you to make the most of your money. Let’s look at five of the best from the experts:

1. Spend less than you earn

Keeping your outgoings lower than your income will ensure you always have surplus cash available should you need it. By living below your means, you are always prepared for a rainy day and this is a great way to start on the path to financial independence.

2. Cash in hand
   
   Although it is tempting to always use your contactless card, keeping cash in your wallet or purse can make it easier to track how much you spend each day. You should also keep some money liquid rather than tied up in investments.3. Automatic savings

   By making your savings automatic, you can relax knowing that these small investments are adding up.

   4. Start young

   Many young people don’t worry about savings, thinking this is something their older selves can deal with. This is a mistake. By considering your financial future early, you give yourself the best chance to build up a sizable amount without having to put away too much of your income. By considering your financial future early, you give yourself the best chance to build up a sizable amount without having to put away too much of your income.

   5. Invest 15 per cent

   Investing just 15 per cent of your income into a simple portfolio of funds has the potential to massively increase the size of your savings over time. Software for IFAs from a provider such as https://www.intelliflo.com/ will help to find the best products for a range of needs; therefore, speaking to an IFA could help you to find the best funds to maximise potential.
   
   Do the maths
   
   By investing just £100 per month for 40 years, you will have saved £48,000 when you come to retirement. Assuming a six per cent annual return, this saving could be worth around £186,000. If you can afford £125 a month, this will accumulate over 40 years to a massive £232,000!. Keeping your outgoings lower than your income will ensure you always have surplus cash available should you need it. By living below your means, you are always prepared for a rainy day and this is a great way to start on the path to financial independence.