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Your financial action plan

4 steps to a better financial future

Acting now doesn't need to be hard

For many people it's not clear where their money will come from when they no longer get a salary. And that can be stressful.

When you add in the pressures of today's bills and basic living costs, not to mention the nice things like holidays, the thought of the future can seem a bit overwhelming.

But don't worry. With our help, you can create a plan of actions you can take today that will make your future self feel proud.

Will a plan really help me?

In a word, yes. Our research reveals that people with financial plans amass over four times (433%) as much in retirement savings and investment levels than non-planners.1

Knowing what your money is doing for you now and where it might come from in future could give you some serious peace of mind. How nice would that be?

Our financial action plan provides ideas and tips to make your financial life simpler and clearer, and give you more confidence. The goal is to make your today easier and your future brighter.

4 steps to a better financial future

  • Step 1

1. Work out how much you can afford to save

A monthly budget will set you free… Well, not really, but it is a critical step towards financial fitness and will help you have money left over each month. This is the foundation of your action plan.

Nearly 13 million UK adults were overdrawn at some time during 2017.2 That's potentially stressful, not to mention expensive, so your goal with a budget should be to avoid that situation.

A few hours spent figuring it out can make all the difference. 

  • Step 2

2. Establish a rainy day fund

What would you do if you were hit with an unexpected repair bill or, perish the thought, you lost your job? How would you cope? Could you rely on savings to see you through? Or would you need to borrow money?

If you've made a start on step 1 of the action plan and you're starting to budget effectively, you'll hopefully have some cash left over at the end of each month. If you've done that for a couple of months in a row, that's a great sign you're getting on top of things.

Rather than spending it, this should be saved to help you establish a rainy day fund – aka your 'phew' money.

  • Step 3

3. Protect the things that matter.

Let's be clear. A rainy day fund is a great idea for short-term emergencies. But if something terrible was to happen, and sadly, we all know cases where it has, an emergency fund will only go so far.

Protection could provide for you or your loved ones for years to come. 

  • Step 4

4. Prepare for the big moments

OK. So you've got a handle on your spending and built up a decent buffer – great work. You're in a stronger position than many people. And this is the ideal place to start looking to the future.

Whether it's buying a house, starting a family, changing career or life after work – whatever your vision for the future, having more money will help to make it rosier.

So how can you make your hard-earned cash work harder? 

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