3 things you can't afford to put off any longer

We’re all guilty of putting off dealing with our money. To help you get started, we’ve outlined three things you simply can’t afford to put off any longer. 

1. Don’t put off investing a moment longer

Take two people. Investor A has diligently invested a lump-sum at the start of every tax year, while Investor B is a bit of last-minute merchant who leaves it to the eleventh hour to invest their lump sum just before the tax year ends.

Who do you think fares best? Does it, in fact, make any difference?

The answer is yes.

It makes a huge difference when you invest. Figures from Fidelity show that there’s a more than £8,000 difference between the fortunes of Investor A who invests at the start of the tax year and Investor B who leaves it until the last minute.

Of course, not everyone will have a lump sum at hand to invest at the beginning of each tax year, but it’s worth noting that Investor C, who we haven’t met before, but who invests a regular monthly sum into their ISA, is still over £6,000 better off than Investor B who left it to the last minute.

2. Consolidate and check your pensions

While it might not be a task that inspires you, at least you can make keeping track of your retirement savings a little easier by putting them in one account.

'Tidying up’ your pensions can help you focus on your retirement goals. If you’ve worked for a number of employers over your career, chances are that you’ll have accumulated several pension pots. Having all these pots in one place makes it easier to monitor and manage your pension savings.

Make sure you read the small print though as there can be costs involved when moving a pension. Some policies charge you a penalty if you want to access the money before the retirement age you selected.

3. If you haven’t got a pension start one now

You are never too young to start putting something away for your ‘twilight years’. While they may well be decades away, that’s all the more reason to start saving now. The longer your investments have to grow, the better. So start small, but start now.

Unless you opted out you'll have been auto-enrolled into a workplace pension. You might not be able to get your hands on the money until you’re 55 at the earliest, but your future self will thank you when you do.

If you’re self-employed or not eligible to join an employer sponsored pension then opening a personal pension is a good way of utilising the valuable tax perks that come when you save into a pension. HM Revenue & Customs will top-up your contributions at your basic rate of tax, so if you make a contribution of £2,880 a year, a total of £3,600 will actually be invested into your pension pot.