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Money advice from Moneyfacts’ Dads

Money advice from Moneyfacts’ Dads

Category: Money
Author: Lieke Braadbaart
Date: 12/06/2018

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Father's Day is coming up soon – this Sunday to be precise. In honour of this special day, we've asked the Dads around the office for their best fatherly advice. This is what they told us:

Live within your means

This might sound simple, but how many of us are guilty of getting to the end of the month and winding up in our overdraft? With more banks opting for a usage fee instead of interest, going overdrawn can be a costly mistake.

If you're more than a little familiar with your current account overdraft, you may want to take a look at our chart of the best bank accounts with an overdraft. This way, you can hopefully make it as cheap as possible to go into the red.

Don't waste your cash

You work hard for your money, so don't waste it on being lazy; make your lunch and keep an eye on all your direct debits. Budgeting is a key skill all the Dads stressed. It doesn't matter how you do it, whether on pen and paper, using a spreadsheet or with an app, knowing your monthly incomings and outgoings is a great place to start.

Look after the pennies and the pounds will keep themselves

Dust off those piggy banks we used to have as children and start putting your spare change in. You'll likely find that all that change soon mounts up. Take it to a coin machine for a nice surprise, or better yet bag it up and deposit it into your savings account.

For those who don't have a savings account already, we have a table with the best easy access accounts with or without a bonus, as well as the Best Buy regular savings accounts for those who can put a little aside every single month.

Develop an emergency fund

Speaking of easy access accounts, it's never too early to start an emergency savings account in the Moneyfacts Dads' eyes. Put a bit aside each month for those rainy-day moments, and try not to touch it unless you must. Don't forget to get the best interest rate possible and check it regularly to ensure you are still getting the best deal.

Do your homework

It is important when looking for any financial product to shop around and not just snap up the first deal that comes your way. Look at the Best Buy tables and use them to assess what you want out of a deal, and if you are unsure get some advice.

Loyalty does not pay

You have probably heard this advice before: sticking with the same provider just because you have been with them for years is doing you no favours. Look around and switch deals so you might save yourself some cash, or even earn some cashback. Don't forget our earlier tip to do your homework when doing so, though; the last thing the Dads want is for you to end up worse off.

Why not have a look at our bank account charts? You can adapt the search criteria so you're getting exactly what you want, whether it's high interest or no fees.

Build your credit score

Your credit score will open doors for you. The better the score, the better the door you get to walk through – by which we mean the product you will be able to apply for. So build that score up, for instance by getting a credit card and using it for small purchases, ensuring that you pay it off in full every month.

Get on the property ladder as soon as you can

Not one Dad thought this would be easy, but often the most rewarding things aren't. Save often and as much as you can to get on that first rung of the ladder. Just think that if you are renting you will likely be paying someone else's mortgage, so why not attempt to pay your own? Don't forget to get a great mortgage deal, either, once you've saved up that all-important deposit.

Once you are on the property ladder – overpay

Well done to those who've managed to buy a home! However, with your mortgage potentially hanging around your neck for 30 years or more, the Dads propose that if you can overpay your mortgage, you should. This way, you should be able to get mortgage-free quicker than originally planned.

Put money into your pension

Too often we neglect our pension when we are young, only to be faced with a panic later in life. Start putting money into your pension pot as soon as you can and you will be better off in the long run. Don't simply trust that automatic enrolment means you're saving enough, either, as every little extra saved now can make a big difference in the future.

Don't forget to ask

If you're lucky enough to have a decent Dad in your life, remember you can always talk to them. So, if you feel like you don't know what to do, try your Dad and he may just have some practical advice of his own.

We wish all the Dads out there a Happy Father's Day!

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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