Starting Out

Aim for 3–6 months of essential expenses in an easy-access savings account. This is your financial foundation — it protects you from unexpected costs like car repairs, boiler breakdowns, or a gap between jobs.

Everything else in this guide comes after your emergency fund. Without one, a single surprise expense can push you into debt.

Your employer is required to enrol you in a pension and contribute money on your behalf. At minimum, make sure you are enrolled and getting the full employer match.

This is genuinely free money. If your employer matches up to 5% and you only contribute 3%, you are leaving 2% of your salary on the table every month.

You can save up to £20,000 per year in an ISA, completely tax-free. Which type depends on your goals:

• Cash ISA — for short-term goals or topping up your emergency fund.
• Stocks and Shares ISA — for goals 5+ years away, where you can ride out volatility.
• Lifetime ISA — if you are under 40 and saving for your first home (25% government bonus on up to £4,000/year).

Repayments are automatic once you earn above the threshold. Do not panic about the balance — it is written off after 25–40 years depending on your plan type.

For most people, it works more like a graduate tax than a traditional loan. Focus on earning more, not repaying early — unless you are close to clearing the balance entirely.

Even if it is small (or negative). Your net worth is simply what you own minus what you owe. Knowing your number is the first step to improving it. Track it monthly and watch it grow over time.