Oct
22
2010
Contractors should 'have different approach to saving'
Posted by Sarah Putt
Contractors have been told that they need to change their attitudes and behaviours when it comes to saving.
According to Alan Easter, strategy director at Honister Capital, people who put away a certain amount of money a week should be prepared to only spend that amount over seven days when it comes to enjoying it.
For example, he points out that those with umbrella companies who put away £20 each week will have to face the prospect of only having that much to splash out when it comes to their retirement, which is why he is calling on people to change their strategies.
Mr Easter added: "The difficulty with saving is, especially in the low interest rate environment … you've got to put a hell of a lot away in order to get the amount of money back in retirement."
However, he believed that contractors need to take a holiday from time to time, as well as treating themselves to a meal at a restaurant, in order to unwind.
The advice follows from a recently released LV= Lifestyle Inflation Index, which found that 35 per cent of people have tightened their belts in other areas so that they can hold onto the little luxuries.
Contractors have been told that they need to change their attitudes and behaviours when it comes to saving.
According to Alan Easter, strategy director at Honister Capital, people who put away a certain amount of money a week should be prepared to only spend that amount over seven days when it comes to enjoying it.
For example, he points out that those with umbrella companies who put away £20 each week will have to face the prospect of only having that much to splash out when it comes to their retirement, which is why he is calling on people to change their strategies.
Mr Easter added: "The difficulty with saving is, especially in the low interest rate environment … you've got to put a hell of a lot away in order to get the amount of money back in retirement."
However, he believed that contractors need to take a holiday from time to time, as well as treating themselves to a meal at a restaurant, in order to unwind.
The advice follows from a recently released LV= Lifestyle Inflation Index, which found that 35 per cent of people have tightened their belts in other areas so that they can hold onto the little luxuries.