In the spotlight this month is Nick Cann, Chief Executive of the IFP (Institute of Financial Planning)
|1. What simple and achievable savings goals do you have on a monthly basis?
I have always been a good spender and therefore maximising the amount of monthly savings that I can put away in my ISA and Pension is important. With weak will power, if the money is sitting there, I am tempted to spend it.
2. What percentage of your salary do you consider putting aside per month for savings?
3. Do you buy items you need or want?
As both my wife and I are fortunate to have good jobs we are able to buy most things that we need although will include all of this within our budget at the beginning of each year. We look to see if there are projects and any special events that we need to plan for in the current year as well.
4. What are your main priorities that you pay for before you start saving?
The annual budget is important to set out what is potentially available. Consideration is then given to any capital requirements for the year that needs to be set aside. This year for example we need to replace some windows in the house and some work outside. Next year we will both be having significant birthdays and will need to plan to celebrate these which will need more money put to holidays etc.
5. Do you save for both the short and long term?
Yes. Having set out some short term, medium term and long term goals, the savings choices reflect as best possible these goals. There is always the current year to consider and then what is happening over the next 5 to ensure that savings aren’t tied up in anything that has to be redeemable at that time which will impact our ability to achieve that goal.
6. Do you plan ahead when saving for a larger purchase?
I think that everybody has to plan ahead for this type of purchase but this is when a family discussion can help to understand what is important and what is prioritised so that everybody can be part of the journey.
7. Do you invest in stocks and shares?
Yes. Most of my savings are for the long term and I believe that Emerging Markets offer me the best route to achieve my goals although I don’t hold individual shares in these Markets but trust the abilities of Fund Managers in these areas. I do have a single holding in Tescos.
8. At what age do you think you should start saving?
I started properly with my first job at Barclays. As stated above if money is sitting there, I am tempted to spend it and so I got into the habit of taking out a savings plan every year for the equivalent of my pay rise and so then (some 30 years ago) it started at £20 per month and increased every year until children!
9. What are your three best savings tips?
- Do a budget to know what you should be able to save.
- Do something monthly and look to increase it every year.
- Still enjoy today whilst you are saving for the future
10. Do you think families should educate their children at a young age with saving habits?
Yes this is really important. Children should be involved in discussions about money and how difficult it is sometimes to do all the things that we would all want to. Monthly savings, getting a job and managing their own budget is a really good exercise. If we could make compound interest a mandatory subject on its own, so many people would see both the positive impact of saving and the detrimental impact of debt!
Interview by :
|Amanda is the editor for Compareandsave.com.She worked as a journalist at the FT business publication, ‘Financial Adviser’. She also worked for the nationals including The Guardian, The Independent, The Mail on Sunday and Daily Mirror. Alongside working for major UK personal finance sites, she now investigates and reports on new, novel ways to help our readers save money.For press enquiries, please visit our Media Centre page.|