We’re going to ask a grown up for a proper answer to this one.
The Money Advice Service (MAS) is a government service that, well…it gives money advice. It’s the driving force behind the financial capability hype. The MAS reckons that financially capable people are those who:
- Shop around for deals to make their money go further 💪
- Understand compound interest 👊
- Save money regularly 👏
- Avoid impulse spending 🙏
The MAS has worked out that getting our act together could bring massive benefits over the next 30 years. Improving how we manage our money could add £20 billion to the UK’s collective savings pot , boost our pensions by £10 billion and put £50 billion in investments. 🙏 ( that’s a high-five, remember).
This is the Strategy
Rest assured, there is a Financial Capability Strategy for the UK – the bright new dawn is coming. But realistically, it could be a while away yet. So, in the meantime, what can you do off your own back to become more financially capable?
1. Read up. Getting a handle on your money situ is easier when you understand it. The finance world is murky and full of jargon, which is why this blog exists. We give you straightforward money and savings advice which informs and possibly even entertains you.
2. Look at the numbers. Come on, you can do it. Most of us would rather go to the dentist, fall in a puddle or wrestle a bear than look at the intimate details of our spending up close. But just like two out of those three examples, it’s an important thing to do regularly. It’s also useful to categorise your spending to give you an idea of how much of your cash is going on essentials, how much on food, how much when drunk etc. etc.
3.Find your savings mojo. Realistically, you’re only going to be motivated to put money aside if you’re excited about what you’re saving for. The thing you’re saving for has to be more important to you than the random stuff you buy day-to-day. Whether it’s a holiday, your wedding day, your first home or a comfy retirement, keep your eyes on the prize.
But where to start?
Financially capable people are confident with money and financially secure, and they make informed and empowered financial decisions. 💪
At the heart of that is being able to save for the future. That's where Chip comes in handy! 😉