Making money work for you

Making money work for you

In and of itself money is just a piece of paper, a bit of metal or, these days, digits on a screen, but what you do with it can make a huge difference to your life.  Here are 5 ways people can make money work for them - and some key tips to getting it right.



Buying a house

This is a major life ambition for a lot of people and can be quite a challenge depending on where you live.  With this in mind, saving and investing can go a long way towards helping you grow that all-important deposit, even when you’re renting.  Once you are ready to buy, getting the right mortgage deal can make a big difference to your overall financial health.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Sheltering yourself and your loved ones from life’s slings and arrows

As a basic rule of thumb, the more important something is to your life, the more important it is to protect it in some way, either by self-insuring or by having an insurance policy (or a combination of both).  What insurance you need will depend on your specific situation, for example if you are employed or self-employed, if you have children, pets, a car, your own home…  As well as having the right type(s) of insurance, it’s also important to have the right level of cover, otherwise you may find yourself wasting money on excessive premiums or, worse still, short of cover when you really need it.

There are other providers of Payment Protection Insurance and other products designed to protect you against loss of income. For impartial information about insurance, please visit the website at www.moneyadviceservice.org.uk.

Saving and investing

As the old saying goes, luck is what happens when preparation meets opportunity.  Saving and investing is the preparation which puts you in a position to take advantage of opportunities as they arise, or even to go out and make them happen.  They are also what help you to weather adversity, for example, a spell of unemployment.  When looking at saving and investing, you need to be clear about whether your main aim is preserving your capital or growing it and what your horizons are.  This will help to narrow down the many options to ones which are right for you.

The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.

Planning for life after work

Retirement isn’t what it used to be, these days, with a bit of forward planning, it can be whatever you want it to be.  Your idea of retirement might be having a guaranteed income, even a small one, so you can start your own business and turn a hobby into a way to earn a living.  Alternatively you might prefer a more traditional style of retirement, when you give up work completely.  Thinking ahead and acting ahead can make all the difference to whether or not your dreams turn into a reality.  You’re never too young to start planning ahead and it’s never too late to improve your prospects.

The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.

Inheritance planning

If there’s anyone you love more than the tax man, then you need to look at inheritance planning.  The more assets you have, the more important it is to ensure that your wishes are legally documented so that they can be acted upon when you die.  The more responsibility you have for other people’s welfare, the more important it is to ensure that the financial and practical impact of your death is minimised as far as it can be, to allow your loved ones to focus on the grieving process and moving on with their lives.  These comments apply just as much to younger people as to older ones, since, sadly, people can die young (as the numerous deaths in 2016 so aptly demonstrated) and any younger adult in a relationship without legal recognition and/or with children should certainly look at inheritance planning.

Inheritance planning is not regulated by the Financial Conduct Authority

If you have any questions please contact your local Charles Derby Financial Adviser today on 0800 849 1279 or email This email address is being protected from spambots. You need JavaScript enabled to view it..