Business | STYLE
MONEY MAKES THE WORLD GO ROUND
By Ben Si l k ROUSE LTD
B
ut it can mean different things to everyone: security and stability, a burden or an unattainable goal. With most people facing a significant squeeze on their income, it can be difficult to think about saving anything, let alone for retirement – even less that there might be a planet-saving, ethical way to do it. But before filing ‘saving’ or ‘retirement’ under Pipe Dreams, perhaps this could actually be a time to sow the seeds for a healthier, more ethical financial life, suggests Ben Silk of Rouse Limited.
You have more power than you might realise There are many ways we can, as individuals, reduce our carbon footprint. From re-usable shopping bags, recycling and composting to eating less meat, using electric cars and switching to renewable energy. But are these small gestures enough? Arguably the biggest environmental impact you can have as an individual involves your money. The benefits to be had are not just about the planet either; being more money mindful can help you control your finances, however tight your budget might currently feel.
It starts with planning Obviously, we are advocates of planning in order to stay in control of your finances but there are non-financial gains to be had too. A recent study by HSBC has found that people engaging with financial advice are found to have better mental health. As HSBC noted: ‘Our study of 3000 UK adults confirms that financial fitness is intrinsically linked with health and wellbeing.’ Right now, the cost-of-living crisis is forcing many people to look at their money only in terms of survival. But even in these straitened times, you can still take steps to help you feel in control of the money you do have.
You have the power From the cash in your bank to the way you save for your retirement, your financial choices can make a difference to your life – and could change the world. It’s easy to think you’re a passive player when it comes to where you put your money but from your pension savings to ISAs, and sometimes even the bank you use: you can choose to filter out options that don’t reflect your ethics.
5 tips to help you achieve money mindfulness Work out your monthly expenses Use your bank statements to understand your monthly income and expenditure. Sort your spending into liabilities (rent/mortgage, utilities, credit card/phone payments) necessities (food, clothing travel), and luxuries (eg entertainment, a daily takeaway coffee). Set your budget for the year ahead Once you know what your monthly income and outgoings are you can set a budget. Where you can, use direct debits to make payments as this can make it easier to control your outgoings. Keep a regular check on your budget Some of your outgoings might vary each month. Your budget can guide your spending and help you see where you can make savings or cutbacks if necessary. Try to save for a rainy day Transferring whatever you have left at the end of each month, however little, to a savings account eg an ISA, allows you to build up a fund for emergencies. Developing a good savings habit is a positive step that can bring peace of mind. Keep track of all your subscriptions It’s easy to let subscriptions roll on. Check all your subscriptions/ memberships and cancel any you don’t use.
Rouse Limited is authorised and regulated by the Financial Conduct Authority May and June 2022
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