– Limit your essential living costs to 60% of your income. Ensure you don’t fall into the cycle of earning, upgrading, earning more, and upgrading again. While it might feel good for a moment, it won’t make you wealthier in the long run. Think of your new promotion as a reason to save more money for the future, not as a reason to elevate your current standard of living.
– Optimise your contributions to your workplace pension. Many employers offer matching contributions, meaning they will match every pound or dollar you put in. This money is added to your pension before taxes, and if you’re a higher-rate taxpayer, ensure you’re claiming additional tax relief.
– Confirm that your tax code and deductions are correct. Errors can cost you money. Also, take advantage of any tax incentives offered by the government. There are tax breaks for making environmentally friendly choices, investing in tax-free accounts, or operating under a company and deducting your expenses.
– Budget. Budgeting may not be exciting, but it is crucial. Find more info on how to distribute your money between different accounts in my profile
By Nischa – Follow @nischa.me
