In the run up to November’s Talk Money Talk Pensions week, our Financial Capability team tell us about their worst and best financial decisions, their plans, and why it’s important to know what you’re doing with your money.
Here, David Anderson – our Financial Capability Relationship Manager for Southeast England, Scotland and Wales and International – tells us about the perils of car finance, the joy of air miles, and why he’s passionate about teaching financial capability.
Worst financial decision
Extending my PCP lease contract – which is a lease option you can have on an asset purchase – to upgrade my car. I signed another contract for a further four years instead of paying off the previous model, which would have been far cheaper.
Best financial decision
Buying property in 2008 just after the Bank Crisis took place turned out to be beneficial in the long run. House prices dropped significantly, which turned out to a better decision than I could have ever imagined.
What age are you planning on retiring/semi retiring?
I will never fully retire but probably semi-retire at or around 65. I don’t think anyone will be able to retire fully in the future – even with a good pension. We’re all living much longer! As medical technology continues to advance we may run out of money!
What is your next financial goal?
Pay off my mortgage! This will give me more disposable income, a feeling of satisfaction and more financial freedom – that is, less debt!
Which money decision, each week/month, makes you feel good?
Anywhere I can save! Be it on a subscription or utility bills, which I tend to find by doing research online or signing up to loyalty schemes.
For example, I travel a lot between South Africa and London and accumulate several air miles each trip which can be used against a new flight or to upgrade your seat.
I was fortunate enough to fly in business class on these miles not too long ago – a pleasure especially at no extra cost to me!
Why is Financial Capability important to you personally?
It is important to me personally as I am passionate about future-proofing my income. That way, if I live to old age, I will still be financially independent!
As I’m so passionate about this myself, I find it hugely rewarding to encourage teachers, schools and alternative providers to understand the importance of being financially capable. Financial capability is a key life skill that every student should have before leaving secondary education.
More in this series
Find out more about Financial Capability
More about Talk Money, Talk Pensions Week