Always use this simple wealth building habit to transform the ‘end game’ for your savings, pensions and mortgages.
E.g. £200pm pension contribution increasing at 0%, 2.5% pa and 6%pa. That’s the equivalent in year 2 of either an increase to £205pm or £212pm. This is nothing in the big scale and you probably spent more than that on a train fare, a few drinks or a couple of snacks or sandwiches.
At 0%pa increases
At 2.5%pa increases
At 6%pa increases
A 6%pa increase each year is not huge when you look at the overall picture e.g. Year 1 = £200pm, Year 2 = £212pm, Year 3 = £224.72pm but it can mean more than doubling your pension or savings fund at year 30 and even at year 20 it could mean a 70%+ bigger fund.
Do it every time you get a pay rise or even if you don’t. It is a habit that will help you maximise your pensions and savings and cut the time your have a mortgage for if you overpay in the same way.
Get into this wealth building habit right now.
This site makes use of cookies to personalise content and provide certain functionality. Our site will not function properly without it. The financialadvice.net cookie only retains the session id, we store no personal information in cookies. For more information please read our Privacy Policy
If you're unsure about cookies, what they are and how to protect yourself from harmful cookies, please see our Cookie Set Up information page.
OK