Investment tips for my younger self

It is difficult to picture your retirement years when you have got your whole career ahead of you and feel, reasonably, bulletproof. But a year of delay becomes a decade quickly, and the longer retirement saving is put off, the harder it becomes to catch up later.

Four rules for a first pay cheque

1. 1Day one of your job should be day one of your investment journey — the longer you have, the more compounding works in your favour.
2. 215% is the number to remember. Setting aside 15% of your earnings every month, from the start, does more for your long-term security than almost any other single decision. If you can’t join a company retirement plan, set up your own debit order and treat it as non-negotiable.
3. 3Take on some risk while you can afford to. Cash and money-market funds feel safe, but over the long term they can quietly lose ground to inflation. A long time horizon means you can ride out the short-term volatility that comes with better long-term growth.
4. 4Ask for help. Investing can feel overwhelming, and a financial adviser who understands your goals is often worth more than the fee, especially early on when good habits matter more than clever moves.

A few more, from the rest of the team

Colleagues added their own hard-won habits: automate a debit order into a fund that matches your goals so the money is invested before you can spend it. Track your spending at least once a year to catch lifestyle creep before it becomes permanent. Have an honest conversation with your parents about their own retirement plans, rather than assuming it will sort itself out. And resist checking your portfolio daily — short-term movements are mostly noise, and reacting to them tends to cost more than ignoring them.

This article is general information and not advice. Silke Financial Services is an Authorised Financial Services Provider, FSP No. 12462.