5 Tips to help achieve your financial goals from the easyMoney Team

(Capital at risk - Past performance is not an indicator of future results. Not protected by the Financial Services Compensation Scheme (FSCS). Money invested through easyMoney is concentrated in property and could be affected by market conditions. For the same reason, instant access cannot be guaranteed. We do not offer investment or tax advice. Please note that the parameters contained in this blog are subject to change as our business evolves).

5 Tips to help achieve your financial goals from the easyMoney Team

Yes, we know. Planning for the future always seems like a mañana sort of thing to do. 

Perhaps it’s something you know you ought to get around to, but life just gets in the way. Understandably, certain life tasks get put on the back burner.

So, we’ve got some ideas to help you, whatever your lifestyle, income and objectives.

A Note of Caution, As Always

Capital at risk - Past performance is not an indicator of future results. Not protected by the Financial Services Compensation Scheme (FSCS). Money invested through easyMoney is concentrated in property and could be affected by market conditions. For the same reason, instant access cannot be guaranteed. We do not offer investment or tax advice. Please note that the parameters contained in this blog are subject to change as our business evolves.

Goal Setting 

We’re all about setting targets to reach our rainbow-end pot of gold, whatever that may be. When it comes to financial goals, effective retirement planning should start with where you ultimately want to be, and how best to work backwards from there. So, you may want to think about short- term, medium and longer-term objectives, and what’s needed at each stage.  

1) Create a Plan and a Budget

Time to get those bank statements out. Calculate your income, your partner’s earnings, and any other money that you have coming in. Then, work out your outgoings. Yes, this is the painful bit: all of them. It all adds up. Your credit card spending, repayments on your mortgage and other debts, grocery and utility bills, how much you spend on your car and so on. 

Now look again. 

Apologies for mentioning it, but how much “non-essential” money is going out? For example, is the enjoyment and convenience of eating out worth the money you’re spending? Most likely, the answer to that last question is “yes” – in the short term; we’ve been let out at last after months of lockdown. But maybe not forever. 

Are you paying for a gym membership that you don’t use? Online subscriptions that don’t pay their way? Do you have an Amazon habit? (Many do). 

2) Pay Off Your Credit Card Debt

We’ve singled this one out. Do pay your debts off first? Be honest with yourself about the interest you’re building up on your credit cards. It’s most likely punitive and could be getting in the way of helping you achieve your financial goals. 

You may be shocked about how much money is slipping away from you over a year, just on interest payments across 2 or 3 credit cards if you make the minimum payment each month.

3) Do your Research – and Know What’s Out There

A standard savings account may not work for you if you’re looking to plan for your retirement. Why? Because with a current rate of return of less than 1%, we’ve said it before – your money could be going into reverse gear. 

From extremely risky Venture Capital Trusts, Enterprise Investment Schemes and Seed Enterprise Investment Schemes (advice mandatory), through to Stocks and Shares ISAs, bonds, and shares, maximising your Capital Gains Tax and pensions allowances and low-risk ISAs, there are many options for investments and savings.

An IFISA from easyMoney offers a target return of between 3.08% and 6.01% on your investment. As you increase your investment level, you move automatically to a higher rate. Our IFISA enables you to invest your annual tax-free allowance of £20,000 in peer-to-peer lending. We’ll match lenders like you with carefully selected property professional borrowers.

You earn back interest on the money you lend, and you’ll receive it monthly, completely fax-free. Whilst this type of investment is NOT a savings account (meaning the funds are not protected by the Financial Services Compensation Scheme (FSCS) and your capital is at risk, easyMoney has never lost a penny from any of our loans, so an IFISA could easily be a part of your financial goal setting. Get in touch with one of our team to find out more.

4) Protect Yourself

If you have a spouse or children who currently depend on your income, how would they manage if you were taken ill suddenly and unable to work? Or if the worst happened? An insurance broker may be able to find you the best policies to protect you and your family. Another tick in the “safety and security” box towards your financial goals.

5) Think Longer Term

Now is the time to visualise what your retirement will look like. 

The biggest long-term financial goal for most people is saving enough money to live on when they are no longer working.

The state pension, although available to most of us may not be enough, so investing in a private pension or making other further-reaching investment strategies could support you towards the golden years you deserve.

Your spending in retirement may not be the same as your spending today. You may have paid off your mortgage, for example. But you may have other wants – or needs. International travel, for example, or medical care. How much money do you need to live on for a life without stress and financial worry? Again, take advice, but an IFISA from easyMoney could go a long way to supplementing your income as a longer-term plan.

As a P2P lending platform, investing in an IFISA with easyMoney could slot seamlessly into your longer-term life strategy planning. Click here to find out more about our Innovative Finance ISA product or get in touch with one of the team to find out more.

Above all, stay positive and always bear in mind why you’re doing this. Whilst cutting back may be painful in the short term, a focus on your future will help you to get to where you want to be much quicker.

That day when you stop working could be with you much sooner than you realise.

Time to make a plan…

All the facts and figures presented are accurate at the time of posting.

easyMoney is not a cash savings account. You may not get back the full amount you put in. Your capital is at risk if you invest. Peer-to-peer investments are eligible for an Innovative Finance ISA which is not a Cash ISA. They are not protected by the Financial Services Compensation Scheme (FSCS). Money invested through easyMoney is concentrated in property and could be affected by market conditions. For the same reason, instant access cannot be guaranteed. We do not offer investment or tax advice.

easyMoney is the trading name of E-money Capital Ltd, a company incorporated in England & Wales. Registered office is 5 Fleet Place, London, England, EC4M 7RD (Company No. 04861007). E-money Capital Ltd is authorised and regulated by the Financial Conduct Authority (FCA) #231680.