The money advice Brits would give their younger selves

Start saving early. Look after your health. Do work you love. These are the three most popular pieces of advice Brits would give their younger selves.

According to research from the latest edition of the annual Financial Priorities survey by financial firm Aegon, if time travel were possible, almost half of Brits – 48 per cent – would choose to go back and tell their younger selves to “start saving as early as possible”.

This sentiment is even stronger among women and those over 50, with 51 per cent of each group wishing they could stress the importance of saving early.

This is followed by “take care of your health”, chosen by 41 per cent of respondents, and “find a job you love”, which resonated with 36 per cent of people surveyed.

Reading this research is a reminder that money impacts so many areas of our lives, with wealth, health and work as our top concerns.

As a money coach, I think it’s important to think about the bigger picture when it comes to money. We can start by asking ourselves, “What do I want my life to look like, to feel like?”

We can follow up with, “How do I spend, save, and invest my money in line with what matters to me most – and not other people’s expectations?”

The advice we’d give to our younger selves tells us a story: one of missed opportunities, of shoulda, woulda, coulda.

We all know saving money is helpful. Savings act as a financial buffer, your first line of defence against financial stress.

· It helps give you peace of mind

· It helps you be prepared for emergencies – hence the name emergency fund. Or, as some of my money clients have called it, an “eff off” fund. Whoever you’re telling to eff off, whether that’s your employer, your other half, or someone else!

· It helps you be prepared for opportunities such as moving cities or moving abroad

However, we live in a world full of options, temptations, and other people’s expectations, with lots of demands on our money and our time.

I spoke with Dr Tom Mathar, head of Aegon’s Centre for Behavioural Research, who says that what we do today can shape our future in meaningful ways.

“Our findings highlight how difficult it is to balance present needs with future security. A majority – especially women and those over 50 – look back with some sense of regret, wishing they had started saving earlier.

“This suggests that financial planning isn’t just about building wealth. It’s also about making better trade-offs throughout life.

“What I thought was interesting was that when you look at things like budgeting or credit and loans, it is younger people, those aged 35 and under, who are more likely to say, ‘I wish I’d learned about this earlier.’

“Whereas older people, those aged 55 and over, said: ‘I wish I’d learned earlier about the importance of retirement planning and investing.’

“This makes a lot of sense as it shows that we have different priorities at different points in our lifetime.

“We find it really hard to think long term and this is not just reflected in our financial behaviour but it’s also reflected in our health choices and how we invest or don’t in social networks, for example.

“We find it really hard to recognise the long-term consequences of our financial conduct and our conduct in general.

“Perhaps what is needed instead of more financial education is longevity education, helping people to understand how their financial, health and lifestyle choices interact over a longer life. Different life stages bring different financial priorities, and a more holistic approach is needed to support people in making informed decisions.”

So how do we focus on saving? Because building that savings habit is clearly easier for some people than it is for others.

My top tip is to start small and repeat the action, consistently.

Try not to get bogged down in terms of how much to save and think that if you can’t save a lot there’s no point in saving a little.

There’s research around the benefit of thinking about your future self and considering what they need and want you to be doing now with your money now, in the present, to take care of them – aka you – in future.

There’s still time to make the most of your tax-free ?20,000 ISA allowance before the end of the tax year on 5th April.

An ISA is a tax wrapper, meaning the money you hold in an ISA isn’t subject to tax. This allows your money to grow faster.

You maximise your savings by earning the highest interest possible. Earning interest on your savings guards against the effects of inflation, which eats away at the buying power of your money.

Work out how much you can afford to save then head to a comparison website to shop around for the best account for you, which typically means looking for the cash ISA that pays the highest rate of interest. Currently, rates of 5.25 per cent are available.

Talia Loderick is a money coach. Talia helps people understand and take control of their behaviour with money so they can stop stressing about money and have enough to live well – now and in future. Visit: talialoderick.co.uk