The Five Ages of Financial Planning: 18 – 35 Starting Out

Having a strong understanding of your money and your financial position is important to ensure you can live comfortably. As your life progresses, your relationship with money will change too.

There are five ages of financial planning which are important to understand. Between the ages of 18 and 35, the focus is on learning how to budget. Whether this involves further education, like university studies, or employment, having a good understanding of your financial income and related outgoings can put you in a good position.

Seeking personal financial planning support can help you deal with your money once you finish education and consider a full time job, getting a mortgage and investing in your future.

What financial matters might you face at this point in your life?

Once you enter adulthood, you have to consider whether you are going to continue your education at university or choose a full-time job.

If you are progressing through further education, you need to have an understanding of how the Student Loan system works. When you start work, you will face Income Tax and National Insurance payments, Pension contributions and student loan repayments, where relevant.

You may enter a long-term relationship during this time in your life and you may consider buying a home with your partner. This might consist of getting a mortgage and at this point, you should consider a Will and pension nomination forms. It is also a good time to start thinking about Income Protection.

Financial planning is invaluable, and you should consider getting support with your finances as early as possible. By working with an expert financial planner, you can learn how to handle your finances effectively to reduce stress, understand why protection matters in the form of life insurance and advice on staying vigilant about financial scams.

The earlier you start getting professional financial planning advice from a financial planning firm, like those who are part of parent company Perspective Financial Group Limited, the better your financial plans will be.

Why might you seek financial planning advice?

There are three common reasons why people seek financial planning advice:

• You have a specific financial need, like considering owning a home or receiving unexpected inheritance from a relative
• You have an issue and think you benefit from expert advice, like if you have some spare money that you’d like to use to help your children
• You want peace of mind that you are making the best use of your finances, like making use of tax or ISA allowances or effectively funding your retirement.

Between 18 and 35 years of age, you are likely to be considering buying your first home or beginning to invest in your future. These areas are likely to be the ones you discuss with a financial planner or financial adviser.

Financial planning at this stage of your life will focus on matters like buying property, saving regularly from your income to make provision for retirement, building up an emergency fund and making provision for your family and children.

One-off events can also trigger a need for financial planning advice, like divorce, a life-changing injury or inheritance. Our financial advisers located throughout the UK can support you and provide the financial advice you need.

Preparing for your financial future

Once you start paying into your pension, potentially through a company pension scheme implemented by your employer, you should remember that these early contributions will make an enormous difference to your pension fund.

You should also form a habit of saving regularly as early as you can. Whilst you should keep personal debt to a minimum, it is worth obtaining a credit card and using it responsibly to help you build a credit score. When it comes to considering and securing a mortgage, this is crucial.

Choose Perspective’s financial planners to support you

Perspective Financial Group Limited is the parent company of our financial advice firms located across the UK. These firms provide the expert financial advice you are looking for.

Our expert financial advisers work with clients to provide a range of personal financial planning advice to people of all ages. Based throughout the UK at our regulated local firms, our financial advisers can provide a range of financial planning services, all of which are authorised and regulated by the Financial Conduct Authority.

We have also created a document with this information for you to read: find that here.

If you are ready to begin personal financial planning with one of our expert financial advisers based in a local office near you, find your closest financial advice firm today.