3 Money Moves to Make Before Turning 30

Money Tree

When you are under 30, you have a long time before thinking about retirement, and stability is the last thing on your mind. However, this is also the time when you come across a lot of “firsts” in your life, like buying your own car, planning a family, getting married and maybe, investing in your own house. While retirement planning might seem far fetched, it is never too early to start saving precious pounds. The following are 3 clever money moves and habits that would serve you well –

1. Use Cashback Credit Cards – Cashback credit cards come with multiple benefits, and the chief amongst them is the amount of money you can save. Basically, every time you use your Cashback credit card, you would be paid back some proportion of your spending. All the top Cashback credit cards pay around 5% in the first 3 months. Also, you get 1% back for spending at the supermarket and 3% for petrol and other transport related expenses.

However, you do not want to keep making payments via your Cashback credit card and then pay interest on the amount. To ensure that you do not forget, set up a direct debit from your account. This way, at the end of each month, your credit card would be paid off. Using this tip, you can save hundreds of pounds every year.

Here is a guide to using your Cashback credit cards well.

2. Research Well Before You Open A Savings Account – While your savings slowly build up, you have to ensure that putting them in a savings bank account is worth it. Most high street bank accounts have pitiful savings rates, and you do not want your money to stop yielding. Banks like Barclays and Aldermore have bonds and savings rate around 3% and more. You should prefer the better paying banks over the meagre paying ones for obvious reasons. Here are UK’s top saving accounts for 2013.

Also, let go of that current account which only earns 0.1%. Spend some time to research on better options and make a wise decision. Here are UK’s top current accounts for 2013.

Choosing a top saving account could add up almost £76 for every £5000 you put in a year.

3. Pay Off Your Debts With Your Savings – First, you must understand the concept behind this statement. Your borrowing rate is always greater than your savings rate. That is the basic principle banks and financial institutions work on because the difference accounts for their earnings. Now you know that when you have a debt that you are paying off slowly, you are still earning a comparatively lower rate of interest on the savings in your bank account.

Using the savings to pay off your debts would leave you better off by almost £800 for every £5000 in your bank account. Here is a guide to help you with your debts and mortgages.

Use these tips for smarter money management. Remember, every bit that you save can ultimately add up to your financially securing your future.

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