The easiest thing you can do to accelerate your journey to financial independence is to know, understand and use all the tools that can give your wealth a boost.
Below is a brief summary of all the schemes you should look at to understand how they increase your net worth and determine which ones are right for you.
I will keep exploring and adding new topics but in the meantime, feel free to ping me a message in case there’s something specific you’d like me to look at.
Probably the best-known government/employee savings scheme. It’s not always the most straightforward but you can’t afford to ignore your pension if you are serious about financial independence.
Find out more about pensions.
Did you know that you can get up £33k in FREE MONEY from the UK government by signing up for a Lifetime ISA?
Also knowns as a LISA, it’s a scheme open to anyone between the ages of 18 and 39. You can contribute up to £4k a year and the government adds another 25% on top of your contributions.
Some restrictions do apply, but if you are not taking advantage of the LISA, you are most likely missing out.
Find out more about the Lifetime ISA.
Save As You Earn
This nifty scheme can potentially give you a tax-free, 25%+ boost to your savings. At the same time, you get full downside protection (guaranteed by the FSCS).
If you are a basic rate taxpayer (or your pension is maxed out) and have a three to five-year investment horizon, you should definitely give SAYE a closer look.
Find out more about SAYE.
Share Incentive Plans (SIP)
A workplace investment scheme that could do wonders in helping you build wealth and grow your net worth:
However, there is a reason why I put the SIP below the SAYE on this page and bolded the word “investment” above.
Share incentive plans, however attractive they may be, are not risk-free. You need to carefully consider a number of factors to figure out whether a SIP is right for you.
Surprised? I used to ignore cards until I’ve done some research around the topic and realized that I can save a couple of thousand every year based on my spending and travel pattern.
It’s easy and pretty straightforward but you need to stay firmly on top of your strategy to make sure you don’t incur unnecessary fees and expenses.
Click here to learn more about building wealth with credit cards.
This is a tricky one. On one hand, I think any investment vehicle that offers tax benefits is worth taking advantage of.
On the other, junior ISAs (also known as JISAs) come with a bunch of bells and whistles which could well make them unsuitable.
Upon serious reflection, I found a way to use a junior ISA to build my family’s net worth. It just happens to be different from what most people have in mind.
Read more about the junior ISA here.