It is different for different people. Some like walking while others prefer big air snowboarding. One group of people prefer to be debt free while others are comfortable with high levels of debt.
Kids can take on more risk than the same people but in their 80’s. Time of life is important.
Stage of life is also important. Before marriage and before kids, adults are often willing to take on more risk.
Be mindful that risk is dependent on many factors, some of which you will not even see.
Being financially aware is one important aspect of life. Like it or not, money is critical to your everyday life. Try getting through a week without buying anything or using anything you have bought. No transport. No food. And no clothes.
You can’t even do a zoom call for work. It wouldn’t be right using the electricity, even if it’s just a little amount. Because it all needs to be paid for with money.
So call your mortgage broker and your financial advisor and assess these higher rates and what you can do about them today. Play out some scenarios. Pay an early repayment charge if it makes financial sense so you can lock into a lower rate today, rather than a 3% higher rate next May.
Unless something breaks and threatens to pull down the entire financial system, we may be looking at a 5% base rate for 5 years or more.
Learn about finances for the next three months. What you learn may save you £75,000 over the next 5 years. Isn’t that worth spending 5 hours on this weekend?
