Spending and saving
Once you鈥檝e paid your bills, you should think about how much you can save each month. It鈥檚 important to have a financial safety net in case of emergencies.
For example, what would you do if the boiler broke down?
Saving a little each month prepares you to deal with emergencies like this.
Buying and renting
As time goes on, you鈥檒l start to think about your living arrangements and whether you want to rent or buy a property.
Advantages and disadvantages of buying:
| Advantages | Disadvantages |
| You will own the property in the end | You will need a home loan (mortgage) |
| It鈥檚 an investment for your future | You will need a large deposit |
| You can add value through home improvements | The value may fall below the amount you borrowed to buy it |
| You have full responsibility for maintenance |
| Advantages | You will own the property in the end |
|---|---|
| Disadvantages | You will need a home loan (mortgage) |
| Advantages | It鈥檚 an investment for your future |
|---|---|
| Disadvantages | You will need a large deposit |
| Advantages | You can add value through home improvements |
|---|---|
| Disadvantages | The value may fall below the amount you borrowed to buy it |
| Advantages | |
|---|---|
| Disadvantages | You have full responsibility for maintenance |
Advantages and disadvantages of renting:
| Advantages | Disadvantages |
| The landlord must pay for maintenance | You must ask permission to make changes |
| You can move easily | The property will never belong to you |
| Less money is needed up front | The landlord can ask you to leave |
| Advantages | The landlord must pay for maintenance |
|---|---|
| Disadvantages | You must ask permission to make changes |
| Advantages | You can move easily |
|---|---|
| Disadvantages | The property will never belong to you |
| Advantages | Less money is needed up front |
|---|---|
| Disadvantages | The landlord can ask you to leave |
Price comparison websites
Price comparison websites are a good idea. They make it easy to find a good deal, not just on financial products but on electricity, oil, and gas too. However, there are a few things to keep in mind.
| Advantages | Disadvantages |
| Competition ensures good deals | Not all companies use price comparison websites 鈥 the best deals might be elsewhere |
| Convenient way of comparing products | Companies strip out many benefits of their products to reduce costs |
| Advantages | Competition ensures good deals |
|---|---|
| Disadvantages | Not all companies use price comparison websites 鈥 the best deals might be elsewhere |
| Advantages | Convenient way of comparing products |
|---|---|
| Disadvantages | Companies strip out many benefits of their products to reduce costs |