Part 4/8:
Before diving into investing, establishing a solid financial foundation is imperative. An emergency fund—encompassing three to six months’ worth of living expenses—provides a safety net against unpredictable life events, such as job loss or unexpected expenses. This fund creates peace of mind and allows you to invest without the pressure of short-term financial needs.
Concurrently, focusing on maxing out your pension contributions is critical. For those employed, contributing to a pension plan that offers employer matching is incredibly efficient, while the self-employed should consider a Self-Invested Personal Pension (SIPP) to leverage tax benefits.