Ever since the great recession more than a decade ago, consumer debt has soared in the UK and across the globe.
The UK has been particularly adversely hit, with household debt reaching a fresh high of £428 billion at the beginning of 2019. Excluding mortgages, the average debt per household rose by £886 during 2018, hitting a new peak of £15,385 according to research from the TUC.
With this in mind, it’s little wonder that financial independence has become such as a key priority for people across the length and breadth of the UK. But what are the precise benefits of achieving this goal, and why should you care?
- Achieve Long-term Financial Security
Several factors have contributed to the rising debt levels in our country, including sluggish real wage growth, increased levels of inflation and diminished job security.
Make no mistake; these factors have also made financial security a crucial objective in the modern age, as it enables you to accumulate savings and improve your circumstances both in the short and longer term.
The desire to achieve long-term security is particularly pressing in the current climate, with the UK pension deficit currently estimated at $5 trillion.
So, by committing a fixed percentage of your salary to savings each month and liaising with wealth management London experts, you can create a financial contingency that covers any gaps in employment and sudden losses of income.
- Boost Your Spending Power
As you continue to build your wealth in the quest to achieve long-term financial security, you’ll also notice your circumstances improve in the near-term.
This is an important consideration; as secure assets and investments can realise additional income that you otherwise wouldn’t have received. This can serve as a bonus that’s received on top of your salary, boosting your disposable income levels and spending power in real-time.
As a result of this, you can improve your quality of life with the minimum of fuss, whilst also providing a better living environment and set of financial circumstances for your loved ones to enjoy.
- Achieve Early Retirement and Far Greater Peace of Mind
If you look to build financial security early enough and take steps to become a disciplined saver, you may be able to achieve the ultimate objective of retiring ahead of time.
This is arguably the single biggest benefit of achieving financial security, particularly at a time where the state pension age is continuing to rise due to a gap in public funding.
After all, even if your state pension payments are small, you can leverage your own investments and live off dividends for a far longer period of time.
This will also afford you genuine peace of mind in a challenging economic climate, as your income continues to outstrip your outgoings and minimise the stress experienced in everyday life.