WEBVTT - Top Tips To Help Make You A Little Bit Richer 0:00:02.400 --> 0:00:05.400 Hey, it's Kia. Welcome to another episode of A Little 0:00:05.400 --> 0:00:08.220 Bit Richer, brought to you by my friends at Legal & General. 0:00:08.400 --> 0:00:10.920 There have been so many nuggets of financial wisdom on 0:00:10.920 --> 0:00:13.380 this show, too many to count, but I've been going 0:00:13.380 --> 0:00:15.780 back through the archives and have handpicked 10 of my 0:00:15.780 --> 0:00:18.660 favorite money tips from all of our episodes so far, 0:00:18.840 --> 0:00:20.730 to send you into the next year as a financial 0:00:20.730 --> 0:00:23.430 whiz that I know you are. So let's dive in. 0:00:24.570 --> 0:00:27.060 Number one, first up is the toughie but a goodie. 0:00:27.390 --> 0:00:29.550 Iain Russell from Money Hub talked to me about the 0:00:29.550 --> 0:00:32.100 importance of financial discipline, and how not to lose sight 0:00:32.100 --> 0:00:34.470 of your goals. Even though it could be hard, it's 0:00:34.470 --> 0:00:35.309 worth it in the end. 0:00:35.339 --> 0:00:40.080 So number one I say is, maintain that financial discipline. 0:00:40.530 --> 0:00:44.400 Just take a second when you're thinking about purchases. Is 0:00:44.400 --> 0:00:47.280 it definitely what you need? If it's new clothes, are you 0:00:47.280 --> 0:00:50.159 going to wear it enough to justify the price? Would 0:00:50.159 --> 0:00:53.280 you potentially visualize that money? Would you prefer it to 0:00:53.280 --> 0:00:56.250 be in one of your savings accounts or knocking off 0:00:56.250 --> 0:00:59.310 a bit more of your credit card? So it really 0:00:59.310 --> 0:01:01.200 all adds up. So just taking that little bit of 0:01:01.200 --> 0:01:04.170 time to just have a think before you spend. Number 0:01:04.170 --> 0:01:07.830 two is living below your means. So again, we're going 0:01:07.830 --> 0:01:10.470 back to looking at your spending habits. Look to make 0:01:10.470 --> 0:01:14.190 those choices that prioritize the long term financial goals and 0:01:14.190 --> 0:01:17.399 give you that ability to top up your emergency fund 0:01:17.459 --> 0:01:21.809 and save for the future. And finally, start early. So 0:01:21.810 --> 0:01:22.741 new year is perfect. 0:01:22.740 --> 0:01:23.641 Good time. 0:01:23.640 --> 0:01:27.060 It might be cliche, but it really is the perfect time 0:01:27.360 --> 0:01:30.810 to build those savings, pay off debt, pop some more 0:01:30.810 --> 0:01:33.450 money into your pension, because the earlier that you start 0:01:33.450 --> 0:01:35.520 to do that, the better you feel. And like I 0:01:35.520 --> 0:01:38.250 said before, even if it's just 10 pounds a month 0:01:38.280 --> 0:01:39.870 or it could be up to 100 pounds a month, 0:01:39.900 --> 0:01:42.660 it really doesn't matter, it's building that habit, and the 0:01:42.660 --> 0:01:44.068 earlier you start that, the better. 0:01:45.450 --> 0:01:48.420 Number two, before you do any kind of investing, it's 0:01:48.420 --> 0:01:51.330 imperative you save towards an emergency fund that will look 0:01:51.330 --> 0:01:54.360 after any unexpected short- term costs that might pop up. 0:01:54.570 --> 0:01:57.420 No one could put it better than Mr. Money Jar himself. 0:01:57.660 --> 0:01:58.860 Timi Merriman- Johnson. 0:01:58.890 --> 0:02:01.230 The other thing to look at is, so we said 0:02:01.230 --> 0:02:04.530 investing is a long- term form of saving, but short- 0:02:04.530 --> 0:02:08.820 term savings are important too. And so the very first place 0:02:08.820 --> 0:02:12.270 to start is your emergency fund. So the way to 0:02:12.270 --> 0:02:14.490 think about your emergency fund is, if you were to 0:02:14.520 --> 0:02:17.970 lose your primary source of income, or an emergency was 0:02:17.970 --> 0:02:21.060 to happen, do you have enough money to get yourself 0:02:21.060 --> 0:02:23.790 through that without having to rely upon debt? Saving an 0:02:23.790 --> 0:02:28.020 emergency fund before you invest means that, should your investments 0:02:28.020 --> 0:02:31.169 fluctuate in value, which they will do from time to time, 0:02:31.470 --> 0:02:33.930 you have a pot in cash that you can draw upon. 0:02:34.290 --> 0:02:36.120 The other thing to look at is things you'd like 0:02:36.120 --> 0:02:38.130 to do or have in the next year or two. 0:02:38.160 --> 0:02:40.830 As we said, investing's for the long term. We tend to think of 0:02:40.830 --> 0:02:42.900 it in terms of years and decades rather than in 0:02:42.900 --> 0:02:44.910 weeks or months. So if you're looking at the next 0:02:44.910 --> 0:02:47.340 one to two years and you have things that you'd like to do 0:02:47.340 --> 0:02:50.940 or have, this could be buying Christmas presents, going on holiday, 0:02:51.030 --> 0:02:52.980 saving for a house deposit will be a big financial 0:02:52.980 --> 0:02:55.620 milestone for a lot of people. Making sure that you're 0:02:55.620 --> 0:02:59.340 saving towards those goals as well is very important. Then 0:02:59.430 --> 0:03:01.770 anything over and above that can go into investments. That's 0:03:01.770 --> 0:03:04.590 money that you don't need today and that's going to 0:03:04.590 --> 0:03:06.750 work for you going forwards. And if you find the 0:03:06.750 --> 0:03:11.370 concept of an emergency fund tricky to visualize, think of 0:03:11.370 --> 0:03:14.310 it in the same way as an overdraft. So of an overdraft, 0:03:14.370 --> 0:03:17.040 that's almost like the basement of your bank accounts. Your 0:03:17.040 --> 0:03:18.959 bank account goes to zero, and then you have the overdraft. 0:03:19.590 --> 0:03:23.160 An emergency fund is simply an overdraft that you fund yourself. 0:03:23.370 --> 0:03:25.350 That's all an emergency fund is. So if you need 0:03:25.350 --> 0:03:27.389 that cash, you're not going for a loan, you're not 0:03:27.389 --> 0:03:28.470 reaching for the credit card. 0:03:29.700 --> 0:03:29.701 You're going for your own savings. 0:03:29.701 --> 0:03:31.201 You have that money, you're putting yourself through that situation yourself. 0:03:31.200 --> 0:03:35.910 I love that. I love that. Number three, consumer debt can have 0:03:35.910 --> 0:03:39.420 a massive impact on our finances, and financial advisor Orann 0:03:39.420 --> 0:03:42.120 Coyle had some great advice around this and what to 0:03:42.120 --> 0:03:42.810 avoid doing. 0:03:42.870 --> 0:03:46.350 Consumer debt is a killer of people's finances, and it's 0:03:46.350 --> 0:03:48.450 something that can really badly affect your finances in the 0:03:48.450 --> 0:03:51.870 long run. When you make naive decisions when you're young, 0:03:52.170 --> 0:03:57.000 I'm talking about credit cards, leasing vehicles, personal loans, payday loans, overdrafts, 0:03:57.240 --> 0:03:59.340 anything that has a high degree of interest that once 0:03:59.340 --> 0:04:01.140 you get into it's going to be difficult to get 0:04:01.140 --> 0:04:03.720 out of. And a real- world example at the moment 0:04:03.720 --> 0:04:07.500 is buy now, pay later. And so that is a massive, 0:04:07.620 --> 0:04:11.070 massive impacting thing on your finances in the long run, 0:04:11.310 --> 0:04:13.380 because if you are not able to service those debts, 0:04:13.590 --> 0:04:15.660 or you get caught in that trap, in the long term, 0:04:15.660 --> 0:04:18.089 that affects your ability to buy a home, your credit 0:04:18.089 --> 0:04:21.390 be affected, it could affect your relationships, because money is a 0:04:21.390 --> 0:04:24.990 massive part of personal relationships. And so my opinion is, 0:04:25.290 --> 0:04:27.270 you have to be very conscious of your spending when 0:04:27.270 --> 0:04:30.630 you're young. And leading back to when people should seek 0:04:30.630 --> 0:04:33.750 out information in their 20s and 30s, that's why you should, because 0:04:33.750 --> 0:04:35.640 you need to make sure that the bad decisions are 0:04:35.640 --> 0:04:37.950 signposted so that you can try and avoid them as 0:04:37.950 --> 0:04:42.029 best as possible. So things like high- interest vehicles, there 0:04:42.029 --> 0:04:44.430 is no need for that. So trying to avoid those 0:04:44.430 --> 0:04:47.609 things can make a big difference. And obviously just overspending 0:04:47.970 --> 0:04:51.089 and frivolously spending money. In reality, the first thing that 0:04:51.089 --> 0:04:52.859 you should be thinking about is, " I need to get 0:04:52.860 --> 0:04:54.540 a rainy- day fund behind me so that I know 0:04:54.540 --> 0:04:56.969 I'm safe." And yeah, if you spend some money, that's okay, 0:04:56.970 --> 0:04:58.740 you have to love your life, but you have to 0:04:58.740 --> 0:05:01.289 always be aware, " Do I have a cushion to fall 0:05:01.290 --> 0:05:03.270 back on if things don't play out the way I 0:05:03.270 --> 0:05:05.610 wanted them to play out?" And that's really important, and 0:05:05.610 --> 0:05:07.830 that's the foundation of a conversation I have with anyone. 0:05:09.390 --> 0:05:11.909 Number four, if you know me, you know how much 0:05:11.910 --> 0:05:15.510 I love talking about pensions. Legal & General's Kim Brown and 0:05:15.510 --> 0:05:17.640 I went deep on workplace pensions, and she has some 0:05:17.640 --> 0:05:20.010 inspiring advice on what you want your dream retirement to 0:05:20.010 --> 0:05:20.460 look like. 0:05:20.760 --> 0:05:23.400 But the amount that you should be contributing is based 0:05:23.400 --> 0:05:26.339 on you. It's based on what's affordable, but it's also 0:05:26.339 --> 0:05:28.560 based on when you want to retire and what that 0:05:28.560 --> 0:05:31.529 retirement looks like. So my best advice would be to 0:05:31.529 --> 0:05:34.110 use some of the tools available to help you plan. 0:05:34.440 --> 0:05:38.279 There's some brilliant free resource if you go onto Money Helper, 0:05:38.580 --> 0:05:41.250 they've got a retirement planner, you can put in details 0:05:41.250 --> 0:05:43.529 about what you earn, when you want to retire, as 0:05:43.529 --> 0:05:46.860 I say, and they will show you your projected income 0:05:46.860 --> 0:05:49.289 at retirement. But they've also got good sliders that you 0:05:49.290 --> 0:05:51.450 can adjust, " What happens if I paid more? What happens 0:05:51.450 --> 0:05:55.080 if I retired later?" Companies like ours, like Legal & General, 0:05:55.080 --> 0:05:58.440 will have similar things, retirement planner tools, so get on 0:05:58.440 --> 0:06:01.350 one of those free tools through your pension provider or 0:06:01.350 --> 0:06:04.620 generally available and just look and think about it. And 0:06:04.620 --> 0:06:08.279 your point on younger savers is so true, save as 0:06:08.279 --> 0:06:10.200 much as you can as early as you can, because 0:06:10.200 --> 0:06:12.870 that money has a really long amount of time to 0:06:12.870 --> 0:06:13.589 work for you. 0:06:13.589 --> 0:06:15.810 Amazing. I think that's really important, like you said, and 0:06:16.290 --> 0:06:20.039 I'm not too far away. So 30 is, it's approaching 0:06:20.040 --> 0:06:23.700 for me, it's coming. Is there a certain amount that 0:06:23.760 --> 0:06:26.250 people like myself, around that age, should aim to have 0:06:26.820 --> 0:06:28.020 in their pension pot? 0:06:28.290 --> 0:06:29.610 I thought you were saying you're not that far away 0:06:29.610 --> 0:06:30.419 from retirement, I thought- 0:06:33.930 --> 0:06:33.931 No, gosh, no. Gosh, no. 0:06:33.931 --> 0:06:33.931 Not quite. 0:06:33.931 --> 0:06:34.020 Not quite. 0:06:34.020 --> 0:06:38.970 Not too far away from 30. Okay. I think it's worth looking at, and thinking now, 0:06:38.970 --> 0:06:41.490 but I would just regularly review it. So I think 0:06:41.490 --> 0:06:43.140 what can be really important is when you get a 0:06:43.140 --> 0:06:45.839 pay increase, before you get used to that money in 0:06:45.839 --> 0:06:48.600 your pocket, log back onto one of those planners, think 0:06:48.600 --> 0:06:50.520 about the difference it could make over the longer term 0:06:50.520 --> 0:06:53.670 if you invest. Same is true if you get a bonus, 0:06:53.760 --> 0:06:57.060 it's a really tax- efficient way of using your bonus money. 0:06:57.420 --> 0:07:00.060 And again, before it goes in your pocket, think about 0:07:00.120 --> 0:07:02.040 retirement you and what that could mean then. 0:07:02.040 --> 0:07:04.620 That's good. I'm going to, I think I've said this before, pina colada 0:07:04.620 --> 0:07:06.330 on the beach, I'm going to have that in mind 0:07:06.600 --> 0:07:11.040 when I come thinking about my pensions. That's really good. Number five, 0:07:11.220 --> 0:07:14.010 when it comes to paying pensions, there are many gaps 0:07:14.010 --> 0:07:17.010 between men and women. Emilie Bellet, host of The Wallet, 0:07:17.250 --> 0:07:19.500 came on to share what women need to know about money, 0:07:19.680 --> 0:07:21.960 and had lots of practical ways women can manage their 0:07:21.960 --> 0:07:23.040 money and build their wealth. 0:07:23.040 --> 0:07:25.770 When we think about money, finances, investing, that can be 0:07:25.770 --> 0:07:28.920 quite scary and overwhelming and you don't know where to start. 0:07:29.220 --> 0:07:32.220 So it's just trying to start with the basics, and often, 0:07:32.220 --> 0:07:34.440 when we run our courses and boot camps, we try 0:07:34.440 --> 0:07:37.140 to have these conversations about money. There's still such a 0:07:37.140 --> 0:07:40.440 big taboo around money because they have this lack of 0:07:40.650 --> 0:07:43.770 education and money being this thing where it's quite, I mean, 0:07:43.770 --> 0:07:45.690 I've always been taught that it's quite impolite to talk 0:07:45.690 --> 0:07:48.150 about money, that girls shouldn't talk about money. When you 0:07:48.150 --> 0:07:51.630 look at the statistics, girls actually receive 20% less pocket 0:07:51.630 --> 0:07:53.640 money than boys. So I think doing a little bit 0:07:53.640 --> 0:07:57.000 of work on your money mindset by having a conversation, 0:07:57.000 --> 0:08:00.150 trying to write your money story, maybe seeing a money 0:08:00.150 --> 0:08:03.600 coach also. Financial advisors can also help you, but really doing 0:08:03.600 --> 0:08:06.630 the work for yourself. And then it's organizing your finances, 0:08:06.660 --> 0:08:09.450 not being worried about checking your bank account. And I 0:08:09.450 --> 0:08:11.940 know that's quite scary for people who never look at 0:08:11.940 --> 0:08:14.280 their finances, but on the morning, try to check your 0:08:14.280 --> 0:08:16.620 bank account once a day, you'll feel empowered, you know 0:08:16.620 --> 0:08:19.200 exactly how much you have. And the same is going 0:08:19.200 --> 0:08:21.480 to go for debts, trying to understand how much debt 0:08:21.660 --> 0:08:24.060 do you have, how much savings do you have, and try 0:08:24.060 --> 0:08:28.470 to understand your basic numbers. So having a little spending plan, 0:08:28.470 --> 0:08:30.300 trying to check for the past months or for the 0:08:30.300 --> 0:08:32.880 past three months, how have you been spending your money? 0:08:33.210 --> 0:08:35.219 So this is the first part. And then thinking more 0:08:35.220 --> 0:08:39.090 broadly about wealth, we all should think about wealth. And 0:08:39.150 --> 0:08:41.880 of course here we're talking financial wealth, but knowing a 0:08:41.880 --> 0:08:44.819 few numbers. So maybe trying to calculate your net worth, 0:08:44.880 --> 0:08:47.370 which is the sum of all your assets, minus the 0:08:47.370 --> 0:08:50.730 sum of your liabilities. If you are quite early in your working 0:08:50.730 --> 0:08:52.920 life and if you have a lot of student debt, you will have 0:08:53.100 --> 0:08:55.679 a negative net worth, but that's okay. It's just a matter 0:08:55.679 --> 0:08:58.410 of improving this number over time and knowing your numbers, 0:08:58.410 --> 0:09:01.920 knowing how much savings you have. So really knowing these numbers, 0:09:02.100 --> 0:09:05.100 also your credit score, and writing them down, and having 0:09:05.100 --> 0:09:08.579 maybe a little date with yourself and your money once 0:09:08.580 --> 0:09:11.309 a month, and I'm sure you talk about that also 0:09:11.309 --> 0:09:14.429 with your friends and communities and on your podcast, but 0:09:14.429 --> 0:09:17.520 it's having this regular catch- up with money I think 0:09:17.520 --> 0:09:21.839 is really helpful, and not judging yourself, really detaching your self- 0:09:21.840 --> 0:09:25.350 worth from these numbers. They don't define you. The amount 0:09:25.350 --> 0:09:27.210 of money you earn, the amount of debt you have, 0:09:27.480 --> 0:09:30.750 they're not your personality, so trying to separate the two 0:09:30.750 --> 0:09:33.870 I think is quite important. But be very realistic about 0:09:33.900 --> 0:09:36.240 how much money you have, how much money you don't have, 0:09:36.420 --> 0:09:38.280 and what are your goals going forward. 0:09:39.780 --> 0:09:43.740 Number six, we all love living in the moment, but Legal & General's, 0:09:43.740 --> 0:09:46.590 Karen O'Byrne really taught me the importance of protecting your 0:09:46.590 --> 0:09:49.320 future just in case the unexpected happens. 0:09:49.350 --> 0:09:53.010 Just because you're not having children and you're not getting 0:09:53.010 --> 0:09:57.300 married doesn't mean that you shouldn't have any protection insurance 0:09:57.300 --> 0:10:01.200 in place. I am my sole dependent, and if I 0:10:01.200 --> 0:10:04.709 can't work or something unexpected happens to me, there are 0:10:04.710 --> 0:10:06.329 still bills that need to be paid and I'm the 0:10:06.330 --> 0:10:10.380 one that's responsible for them. So critical illness, income protection, 0:10:10.410 --> 0:10:13.920 life insurance, explore them, read up on them, have conversations 0:10:13.920 --> 0:10:17.429 about them, and just see if they're right for you. 0:10:17.640 --> 0:10:21.240 And you can also have access to things like well- 0:10:21.240 --> 0:10:26.189 being benefits, private diagnostics, counseling, private GPs, and these are 0:10:26.190 --> 0:10:28.740 the services that you can access right now, which again 0:10:28.740 --> 0:10:31.590 saves you money. So there are benefits to having these 0:10:31.590 --> 0:10:34.080 products now, not just looking into the future as well. 0:10:34.290 --> 0:10:39.000 I'm definitely of that generation of millennial that's very much YOLO. 0:10:39.240 --> 0:10:42.059 I've just really aged myself there in saying that. I know, 0:10:42.059 --> 0:10:45.449 I'm definitely not Gen Z. However, I think it's a 0:10:45.450 --> 0:10:48.720 really great attitude to have sometimes, but don't do it 0:10:48.720 --> 0:10:52.980 at the cost of your financial security for now and 0:10:52.980 --> 0:10:56.400 in the future. By all means, enjoy life. Enjoy the 0:10:56.400 --> 0:10:59.219 choices that you've made, enjoy the family that you've built, 0:10:59.220 --> 0:11:03.090 whether that's you and your cat or you, two dogs, 0:11:03.090 --> 0:11:05.880 three goldfish and a hamster, or whether that's you married 0:11:05.880 --> 0:11:10.980 with children, don't put things off waiting to do other things. 0:11:11.280 --> 0:11:14.819 So just be really mindful and don't disengage from your 0:11:14.820 --> 0:11:18.630 finances just because you're enjoying your disposable income. 0:11:20.429 --> 0:11:23.550 Number seven, getting to know the benefits of ISAs and making 0:11:23.550 --> 0:11:25.800 the most of them is really important to building a 0:11:25.800 --> 0:11:30.090 personal wealth Legal & General's Fahad Ahmed explained all about stocks 0:11:30.090 --> 0:11:32.670 and shares ISAs and how you can make them work for you. 0:11:32.820 --> 0:11:34.500 So first of all, you've got that tax- free element 0:11:34.500 --> 0:11:37.110 that we spoke about. So any money that you make 0:11:37.110 --> 0:11:38.849 through gains on the stock market, you don't have to 0:11:38.850 --> 0:11:40.890 worry about paying tax on it. The good thing about 0:11:40.890 --> 0:11:43.350 stocks and shares ISAs is that if you invest for 0:11:43.350 --> 0:11:46.230 the long term, and we're talking about over five years, 0:11:46.679 --> 0:11:49.530 you can generally expect to see better returns than what 0:11:49.530 --> 0:11:51.599 you would see if you just left your money in let's 0:11:51.600 --> 0:11:54.630 say your current account, or even a cash ISA. So 0:11:54.630 --> 0:11:56.520 that's another thing that's really good. I do need to 0:11:56.520 --> 0:11:59.850 stress though that with stocks and shares, ISAs, it's an investment. And 0:11:59.850 --> 0:12:02.280 when we're talking about investing, it's all about the long term. 0:12:02.460 --> 0:12:04.559 It's all about that minimum five years. That's the key 0:12:04.559 --> 0:12:07.679 number to remember. But the longer you leave your money invested, 0:12:07.860 --> 0:12:10.890 the more chance there is that you'll actually see positive returns. 0:12:11.190 --> 0:12:12.960 As I said though, it's an investment, so your money, 0:12:12.960 --> 0:12:14.939 it will go up and down, and you could actually 0:12:14.940 --> 0:12:16.920 get back less than you put in. So if it's okay, 0:12:16.980 --> 0:12:19.679 I could just touch on those different options for how 0:12:19.679 --> 0:12:21.809 you can invest in a stocks and shares ISA. So 0:12:21.809 --> 0:12:24.240 there's two main options. The first one is what we'd 0:12:24.240 --> 0:12:27.329 call a DIY approach. So this is where you pick your 0:12:27.330 --> 0:12:31.230 own investments. You can pick things like corporate bonds, government bonds, 0:12:31.440 --> 0:12:33.630 unit trusts. You can even go as far as to 0:12:33.630 --> 0:12:37.350 pick your own individual company shares. And for me, that's 0:12:37.350 --> 0:12:38.580 what seemed a little bit daunting. 0:12:38.610 --> 0:12:39.630 It's very hands- on, isn't it? 0:12:39.660 --> 0:12:42.599 Exactly, exactly. So for me, it is not really the one. What 0:12:42.600 --> 0:12:46.590 I like is the second option, which we call managed portfolios. Now, 0:12:46.590 --> 0:12:49.140 with a managed portfolio, you can take a step back, 0:12:49.350 --> 0:12:51.809 you invest your money, and you leave it to the professionals, 0:12:51.960 --> 0:12:54.179 you leave it to the investment experts to invest your 0:12:54.179 --> 0:12:56.429 money on your behalf. The only thing you've got to 0:12:56.429 --> 0:12:58.530 do is pick what level of risk you want to take. 0:12:58.890 --> 0:13:01.770 So providers that have this option, they'll generally have a 0:13:01.770 --> 0:13:05.309 couple of managed portfolios, maybe three, maybe five, that all have 0:13:05.309 --> 0:13:07.380 a different risk rating. So you've just got to decide 0:13:07.380 --> 0:13:08.910 whether you want to go for the lower risk one, 0:13:09.210 --> 0:13:12.360 a medium risk one, a higher risk one. Sometimes you'll 0:13:12.360 --> 0:13:16.140 see different terminology, they might use words like cautious, adventurous, 0:13:16.410 --> 0:13:19.860 things like this. But it's the same concept. That's great for beginners because 0:13:20.100 --> 0:13:22.350 you don't have to have a huge amount of knowledge. 0:13:22.620 --> 0:13:24.270 You can just take a step back and like I say, 0:13:24.300 --> 0:13:25.590 let the professionals do their thing. 0:13:27.120 --> 0:13:31.320 Number eight, with higher living costs and inflation, breaking into 0:13:31.320 --> 0:13:34.440 the property market has seen more difficult than ever. But Legal & 0:13:34.440 --> 0:13:37.349 General's Hazel Johnston shares some great tips for getting a 0:13:37.350 --> 0:13:40.200 foot onto the property ladder. What if you don't have 0:13:40.200 --> 0:13:42.990 access to that kind of family support? Do those people 0:13:43.050 --> 0:13:45.210 risk being locked out the property market? 0:13:45.360 --> 0:13:47.640 Yes. I'm really interested to use the word overwhelming, because 0:13:47.640 --> 0:13:50.760 it can be so easy to feel so overwhelmed looking 0:13:50.760 --> 0:13:52.740 at the amount, but what I'd say, it probably comes 0:13:52.740 --> 0:13:55.709 to three things. I'd say, first of all, no, you're 0:13:55.710 --> 0:13:59.130 not locked out that market. If we're talking about savings 0:13:59.130 --> 0:14:02.850 and actually being able to financially get there, I'd say, 0:14:03.150 --> 0:14:05.250 if you're anything like me and you've got a pot 0:14:05.250 --> 0:14:08.190 of money saved up, you want to try and keep 0:14:08.190 --> 0:14:11.250 that there. And it's so easy to dip into that 0:14:11.250 --> 0:14:14.070 or be tempted to if your friends, I don't know, 0:14:14.190 --> 0:14:17.160 make a trip or something. So I would always say, 0:14:17.220 --> 0:14:20.340 try and save on the side. So have your property 0:14:20.340 --> 0:14:24.300 savings either in an ISA or whichever way that you choose 0:14:24.300 --> 0:14:26.790 to do that, but then there are some apps and 0:14:26.790 --> 0:14:28.920 tools that can help make saving on the side for 0:14:28.920 --> 0:14:32.850 your little luxuries really easy. So I know for example 0:14:32.850 --> 0:14:35.580 with my bank, it will round up automatically the spare 0:14:35.580 --> 0:14:38.640 change to the nearest pound, and then that's my little 0:14:38.640 --> 0:14:42.060 fund that actually builds up quite a bit over time. 0:14:42.060 --> 0:14:42.150 It does. 0:14:43.200 --> 0:14:46.410 So I'd definitely say trying to utilize little tools and 0:14:46.410 --> 0:14:48.990 techniques like that can help, without it then feeling like 0:14:48.990 --> 0:14:52.200 a chore, trying to get those savings up. Thirdly, and 0:14:52.200 --> 0:14:56.250 the more practical part really, if you really can't afford 0:14:56.250 --> 0:14:58.109 to save or get to the savings that you want 0:14:58.110 --> 0:15:01.620 to or all the schemes that are available, there's lots 0:15:01.620 --> 0:15:04.410 and lots of details, which I'm sure mortgage advisors could 0:15:04.410 --> 0:15:07.590 help you on that. And then you've also got lifetime ISA, 0:15:07.830 --> 0:15:10.620 but essentially getting free money. They'll give you 1, 000 pounds 0:15:10.620 --> 0:15:13.320 for every 4, 000 pounds you save, so it's 25% 0:15:13.710 --> 0:15:16.620 of your savings up to 4, 000 pounds each year. 0:15:16.620 --> 0:15:18.780 And I just think people need to be more aware 0:15:18.810 --> 0:15:21.630 of that. So it's not just about buyers and purchasers 0:15:21.630 --> 0:15:24.600 having to do all these different things to try and 0:15:24.600 --> 0:15:27.510 get into the industry. A lot of big industry names 0:15:27.540 --> 0:15:31.500 are also supporting new and innovative initiatives. So one being 0:15:31.500 --> 0:15:34.860 Generation Home, that's a startup mortgage company. So there's lots 0:15:34.860 --> 0:15:37.890 and lots going on to try and make it easier 0:15:38.100 --> 0:15:39.750 for people to get on that property ladder. 0:15:41.490 --> 0:15:44.730 Number nine, you often hear the importance of diversification when 0:15:44.730 --> 0:15:48.210 it comes to investing. Pension expert Michael Porter from Legal & 0:15:48.270 --> 0:15:51.330 General shared an amazing analogy to help us understand it, 0:15:51.630 --> 0:15:54.870 not just for pensions but for an investment portfolio. Have 0:15:54.870 --> 0:15:55.620 a listen to this. 0:15:55.740 --> 0:16:00.450 So diversification in its simplest terms, is not putting all of 0:16:00.540 --> 0:16:04.170 your eggs into one basket. So not going all in 0:16:04.230 --> 0:16:08.070 on equities or all in into a bond fund. So 0:16:08.190 --> 0:16:10.560 if you think about it a bit like going to 0:16:10.770 --> 0:16:14.100 a buffet, so when you go for a buffet, rather 0:16:14.100 --> 0:16:18.180 than taking just one particular type of food, you're then 0:16:18.180 --> 0:16:21.120 risking not liking that food and it might not be 0:16:21.120 --> 0:16:23.400 to your taste. So actually, at a buffet, you would 0:16:23.400 --> 0:16:26.610 go and try a few different types of food, and 0:16:26.850 --> 0:16:29.550 the chances are then that if there's one part of that 0:16:29.610 --> 0:16:31.890 meal that you don't like, then there are going to 0:16:31.890 --> 0:16:34.920 be other options available to you that you will like, ultimately. 0:16:35.250 --> 0:16:37.500 So that's the first thing. And the other thing I 0:16:37.500 --> 0:16:40.200 would say is that you should probably have a balanced 0:16:40.200 --> 0:16:43.140 diet as well. So not just all about pension savings, 0:16:43.140 --> 0:16:47.070 you probably want to diversify where your savings are invested, 0:16:47.280 --> 0:16:51.000 because they all serve a different purpose. So pensions, for example, 0:16:51.330 --> 0:16:53.580 saving into a pension is going to help you towards 0:16:53.580 --> 0:16:56.460 saving for retirement, but then if you've got medium- term 0:16:56.460 --> 0:16:58.920 savings goals, you might want to invest in something like 0:16:58.920 --> 0:17:01.350 a stocks and shares ISA or have a cash ISA. 0:17:03.300 --> 0:17:07.350 At number 10, we often hear and maybe dream of financial freedom, but how do 0:17:07.350 --> 0:17:11.070 we actually get there? Jenny Hazan from Legal & General broke 0:17:11.070 --> 0:17:11.850 it down for us. 0:17:11.970 --> 0:17:14.340 Work on something that the industry sometimes like to call 0:17:14.340 --> 0:17:18.690 the FU fund. And that is really about having power 0:17:18.750 --> 0:17:21.720 and having choice. So this is the ability to walk 0:17:21.720 --> 0:17:25.200 away in situations where they're not serving you anymore. So 0:17:25.200 --> 0:17:27.480 that might be a job that you really hate that's 0:17:27.480 --> 0:17:30.840 really impacting your mental health, it might be to walk 0:17:30.840 --> 0:17:33.420 away from a relationship, it might be to walk away 0:17:33.420 --> 0:17:36.270 from that awful flatmate that has not washed the dishes 0:17:36.270 --> 0:17:39.150 since the day they moved in. And over time, you 0:17:39.150 --> 0:17:42.810 can continue to build that fund. So I think that's 0:17:42.810 --> 0:17:45.720 a really important one to think about. After that, you 0:17:45.780 --> 0:17:49.619 can start thinking about those savings goals, so the short term, 0:17:49.619 --> 0:17:52.650 the medium term, and the long term, and think about 0:17:52.770 --> 0:17:55.290 what sort of money you will need for those goals, 0:17:55.440 --> 0:17:57.660 and at what point in your life, because that has 0:17:57.660 --> 0:18:00.780 an impact on where you want to invest that money. 0:18:01.050 --> 0:18:04.590 So I think from a longer term perspective, obviously, a 0:18:04.590 --> 0:18:07.440 pension is a great place to start thinking about long- 0:18:07.440 --> 0:18:11.609 term saving. Pensions can be really tax efficient, so if 0:18:11.609 --> 0:18:15.030 you wanted to put 100 pounds into your pension, 80 0:18:15.030 --> 0:18:17.399 pounds of that would come from you, 20 pounds would 0:18:17.400 --> 0:18:20.580 come from the government, and also, your employer will, if 0:18:20.580 --> 0:18:24.330 you've got a workplace pension, will also be making contributions 0:18:24.330 --> 0:18:26.609 as well. And I think it's worthwhile mentioning that some 0:18:26.609 --> 0:18:31.379 employers will put more money in, they'll match your contributions, 0:18:31.380 --> 0:18:34.470 and if you are not going to that level, you're actually leaving 0:18:34.470 --> 0:18:36.419 free money on the table, and no one wants to 0:18:36.420 --> 0:18:36.930 do that. 0:18:40.440 --> 0:18:43.109 That wraps up our top 10 money tips. I hope 0:18:43.109 --> 0:18:45.780 you learn as much as I did, have a lovely Christmas, 0:18:45.840 --> 0:18:47.880 and we'll talk to you in the new year. I'd 0:18:47.880 --> 0:18:50.429 love it if you could review the podcast, spread the word, 0:18:50.550 --> 0:18:52.770 and help others get a little bit richer too. Keep 0:18:52.770 --> 0:18:55.980 up with the show on TikTok and Instagram at Legal & General. Thank 0:18:55.980 --> 0:18:57.359 you for listening. See you soon.