Three next steps
1. Define what financial security looks like for you
If you know you have an above average salary but don’t feel secure, ask yourself why. Is it because you struggle to build up savings? Is it because your bills are too high? Is it because you often spend more than you earn?
Starting and growing an emergency fund is almost always a good idea – just don’t keep on saving out of fear once you’ve reached your goal (the rule of thumb is to work out what your monthly essentials cost and save 3-6 times this).
2. Examine your bill for ‘essentials’ – has lifestyle creep taken over?
Yes, the cost of essentials like council tax and energy has gone up – but not everything is an ‘essential’. Investing a little time in yourself by going through your spending history and making a few changes could make you feel a whole lot better about money.
If you’re a Starling customer, you can re-categorise your spending so it gives you a granular overview. Categories include ‘Drinks’, ‘Gaming’ and ‘Subscriptions’. You’ll also be able to see all your scheduled payments, including Direct Debits, standing orders and recurring card payments, in one place.
3. Consider other forms of wealth
Once you reach a certain threshold, is ‘wealthy’ actually a mindset, rather than a number? Possibly. For some people, feeling ‘rich’ is far more about their work-life balance and mental health than it is their bank balance – provided they can pay for the roof over the head and the food on the table. Community, health and happiness all count for a lot – and none of them are bolted to what you earn.
* The 2024 provisional data from ASHE shows that someone aged 22-29 earning £37,000 a year before tax, would be in the top 30% for that age bracket (precise salary for this percentile: £35,292). If they had started on £37k when they were 21, this would have put them in the top 10%.
The article above includes general information and should not be taken as financial advice. If you have questions about your specific circumstances, please speak to an independent financial advisor.
