As someone who is self-employed, I have started thinking lately about pensions, life insurance, savings and retirement, what I should be doing in the long term for my future. Whilst there are a number of pension plans I could pay into I have also looked at savings plans to save more efficiently. It is hard to visualise though with interest rates how much my savings will be worth.
Thinking about how much to save
For someone who is employed on a monthly salary, it is easy to look at income and expenditure and think about how much disposable income you have left to save. When you are self-employed with a variable income it is different.
One thing I have considered when looking at savings and retirement, for example, is whether I could put aside all my ad revenue each month to save for something. Or perhaps for each £100 that I earn I could put £10 into my savings. It is so hard to decide, isn’t it?
Whilst I was always good at maths at school and am still more than capable to work out how my savings will grow with interest it is so much easier with a specific calculator!
I found this savings calculator which made things much easier. Maybe I can save up for a villa in Majorca (in time!) or a nice holiday! Plus it is nice to compare different savings accounts and rather than look at the interest rates be able to easily compare the real difference it would make.
What are you saving for?
Whilst I definitely need to be thinking about savings and retirement I also want to save for holidays and extras like renovating/decorating.
Do you have savings goals? Are you saving for a new car or holiday? Did you realise how expensive being an adult is when you were younger, I know I didn’t!
Talking of villas and holidays we were talking the other day about where we would buy villas if we won lots of money, we decided on Florida as being good for rental income as well as holidays but couldn’t agree whether anywhere else was good for holidaying and renting to holidaymakers too.
Maybe it is all a pipe dream anyway, I will see how much I can save and if we happen to win a few million! The pandemic hasn’t helped many people or businesses but others have thrived, how has it treated you?
Are you considering your savings and retirement or just living for today? All of the major banks (eg HSBC, Clydesdale bank, Natwest etc) have savings accounts, why not take a look?