Financial tips before 40

Franster

Hi all, 
Does anyone have tips on money saving essentials before you turn 40? 
I have heard that critical illness cover goes up even more after 40, so I will try to take that out. 
Also, that it's good to take out a LISA before 40. Anyone know why this is a good idea? 
Plus, I should make a will. 
Anything else I should be considering that could be sensible to have in place before 40? 
Thank you for any advice you can give me. I don't earn a lot so want to make the most of any tips and tricks for our family. 

ShortArmsDeepPockets

LISA - can only be opened before 40. So even if you have no immediate plans to put regular or large savings in it, you must open one before 40 to have the option to utilise this facility. For that reason alone, probably worth doing (but dependant on your circumstances).

Sandtree

Franster said:

Hi all, 
Does anyone have tips on money saving essentials before you turn 40? 
I have heard that critical illness cover goes up even more after 40, so I will try to take that out. 
Also, that it's good to take out a LISA before 40. Anyone know why this is a good idea? 
Plus, I should make a will. 
Anything else I should be considering that could be sensible to have in place before 40? 
Thank you for any advice you can give me. I don't earn a lot so want to make the most of any tips and tricks for our family. 

All protection insurance increases with age and the longer you leave it the more chance you get diagnosed with something that’ll make it hard to get insurance 

Personally not a fan of CIC cover, too narrow and doesn’t keep pace with science. Personally find PHI/income protection much more important. 

Emmia

If you've got a family (kids? partner/spouse), you need a will...

But please use a proper solicitor to draft it.

Daliah

Probably the most important matter is to maximise your pension, and your partner's pension if you have a partner.

Taran3030

Hi I'm 33, a will I got when I had a child (I chose Farewill as it's affordable and editable) though I'm looking into a Trust Will and Lasting Power of attorney from Co-op at the moment, though more expensive. It's good to hear about PIP thanks as I was thinking about CIC too. I have life insurance too, though it's the minimum of £10 a month. I contribute from work for pension though add £19 a month also, that's gone up from min £15, so I hope to increase it again.

I am a low wage earner at the moment, I'm agency staff term time and looking to get bank work in holidays and studying to be a Counsellor. 

Yes I agree with the pension part, I have looked into LISA's though Barclays isn't offering it at the moment, some are through a monthly fee and stocks and shares ISA's too. 

I am getting better at learning about financial things from podcasts and books, I save short-term - emergencies - long term at the moment, I missed out on letting my money grow in my twenties so I'm serious and frugal about it now!

Hope it helps!

IAMIAM

I would say....

LISA - AJ Bell I am moving to...this will be a nice cash pot at 60 but also available in emergencies (the 25% fee will hopefully be negated with the value increasing - but who knows)

LIFE COVER WITH CIC - I bought when young, every premium now is more than double when I view it. Its only for 150k, so adds to the pot/illness if needed.

PERMANENT HEALTH INSURANCE - Buy it with a view that salary will increase. I got it with 3k per month pay out until age 65 but was earning around 2k a month at the time. It saves me having to change it all the time and the premium fixed is only £320 a year.

I use moneyworld for both - they are a great execution only place

S&S ISA - Worth having one.

PENSION - Pay extra into it, I have a DB one so I am just buying an extra £250 per year pay out at retirement until I finish work completely. 

WILL - Make One

Thrugelmir

Franster said:

Does anyone have tips on money saving essentials before you turn 40? 

Start your long term planning now. The one thing you can never buy is time. 

eskbanker

Taran3030 said:

Yes I agree with the pension part, I have looked into LISA's though Barclays isn't offering it at the moment, some are through a monthly fee and stocks and shares ISA's too. 

Not sure where Barclays come into it (do you have a current account with them perhaps?) but they, along with most major banks, have ignored LISAs since their launch five years ago, so don't let a LISA decision be influenced by high street banks' attitudes to the product.

jbrassy

I think the debate over whether to get a LISA depends on your circumstances. If you own a house already, I think it's pointless. If you don't, then it's probably worth getting.

You should definitely start saving into a pension. If your company operates a defined contribution pension (most likely if you work in the private sector), the total contribution to your pension should be half your age. So if you're aged 30, the employer plus employee contribution should be equal to 15% of your salary. 

Finally, a stocks and shares ISA is a good idea. Vanguard are probably the best option given their low fees.

For all other financial advice, just use the advice on this website and you can't go far wrong.

enthusiasticsaver

There are some good suggestions above and many of them may well be essential for you (before 40 or any age really) but we would need to know more about your circumstances.  You say you are a low earner and you mention a family but not whether you are married.  If not and you have dependents you definitely need a will in place.  Even if you are married it is fairly cheap to set up and sensible to do so.  Not really age dependent though.  

Life insurance is a must and depending on your job some sort of income protection if you are ill. The younger you are the cheaper the premiums tend to be so yes those are age dependent. 

A LISA can be opened before 40 but whether or not this is a good thing for you depends on whether you own a house already or are saving for one. You get a bonus from the government of 25% and is to help you save for a house if you are a FTB or retirement.  

A pension is best opened asap and you will get contributions from your employer, tax benefits and maximise the period of growth if you open this young.