*Collaborative post.
Financial security is what almost everyone strives towards.
For high earners it is of particular importance — to try to protect the money they are earning — as there is more to keep safe.
But, how exactly can we achieve this?
If you want to make the most of your assets, take a look at three of our top tips:
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Careful budgeting
Some high earners feel that they don’t need to budget. Frugality, after all, has long been associated with people earning a low income.
However, budgeting can benefit everyone — however much they earn. Monitor your money, and you’ll be less likely to face unexpected shortfalls in the future.
By creating a weekly or monthly cash flow on a simple spreadsheet, you can plan your outgoings and lifestyle in advance. Better still, carry your cash flow with you as an uploaded document on your phone or tablet, and you can look at it whenever you feel the urge to overspend.
You don’t just stand to protect your assets; you could become more confident in financial handling, too.
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Contingency funds
Budgeting isn’t just useful — it’s essential. If you put aside a certain amount of money each month, you can be prepared for any financial situation, including emergencies and changes of circumstance.
Though nobody wants to face a costly surprise, they can occur at any time. Building a contingency fund means you will be able to deal with it much better.
It could be particularly helpful if you need to take unpaid leave from work, for example. That way, you won’t have to worry about covering bills and maintaining your usual lifestyle during that period.
Equally, a fund may come in handy if you ever face redundancy. You’ll then have enough money to tide you over while you secure new employment.
Prepare well, and you can always remain financially secure.
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Pension plan
You’ll no doubt know the value that a pension plan can offer. As a high earner, you will have garnered a state pension through national insurance contributions as well as building a private or corporate pension along the way, too.
At state pension age (currently 65), Brits have the opportunity to either claim or defer their acquired sum. A deferred pension, for example, increases by a small amount, once its owner has retired. A private pension can be drawn earlier – usually around the age of 55.
Although you may be a long way of retirement age now, it’s useful to plan ahead and decide on the best option for you long-term. You can then start to save effectively. You could always consult a financial adviser to work out the best route for your retirement.
You work hard for your income, so it’s only right that you want to protect it. Follow the right steps, and you can secure your finances, both now and for the future.
