Take 10 mins - the time it takes to drink your coffee – to improve your financial future
Posted by Adrian Lowcock in Latest insights category on 25 Sep 19
October is International Coffee Day. In the UK, workers spend an average of 100 hours a year making hot drinks. However, if they took the time, whilst enjoying their coffee, to manage their finances it could be hugely beneficial for their personal wealth.
Whilst you enjoy a coffee break, you could take 10 minutes to examine your finances and improve your financial future. Finance is often seen as complicated and ends up at the bottom of people’s to do lists as the rewards of getting on top of your finances are not instantly visible and takes time.
Getting on top of your finances is about making a series of small steps and changes, which collectively can have a big impact on your money. For example if you had invested £100 on each International Coffee Day into the MSCI AC World Index over the past decade, today you would have a return of £1,996*, before charges, on an initial investment of £1,000.
Here are three things you could do during your coffee break which could help you improve your finance future.
Start a Budget
Get on top of your finances by keeping track on how you spend your money. Know what goes on living expenses and therefore how much is left to spend on yourself and savings. A budget can be a bit of hard work so break it down into bite size pieces. The first step is identify your essential items e.g. utility bills, mortgage costs etc. and then tot these up. Subtracting fixed expenses against monthly income gives an idea of your disposable income.
Set up a savings account
If you have not already done so, open up a savings account and set up a regular direct debit to transfer a small amount of your income into it each month. It does not have to be much, just what you can afford. If you already have a savings account then consider reviewing the interest rate you are getting and think about switching to a better rate. Do the research in your coffee break.
Open an ISA and begin investing
ISAs are a popular starting place for many investors and are good for those looking to grow their investments free of tax. Take 10 minutes to learn more about the benefits and suitability of ISAs
. If you are already comfortable with ISAs, but want some idea on where to get started, why not look at our starter portfolios
. If you prefer to let someone else make the investment decisions, then you might find Multi-Asset funds
are more appropriate for you.
: We do not give investment advice so you will need to decide if an investment is suitable for you. If you are unsure whether to invest, you should contact a financial adviser.
*Source FE Analytics, Total Return in pounds sterling.