The Women’s World Cup is a great example of skill, passion, and teamwork. But beyond the matches, it can also teach us invaluable lessons about money.
Just like in football, you can’t play without an opponent. Your finances are the same.
Inflation, debt, and cost of living are opponents we all face today. Ones we can’t control. But we can plan and put a team together to reduce their impact. Learn more about the 5 to Thrive building blocks to help you secure your financial future.
Find out what makes our #FinanciallyFearless football team.
This article isn’t personal advice. If you’re not sure what’s best for you, ask for financial advice.
Goalkeeper
In both football and personal finance, defence is important.
A goalkeeper is the first name on the team sheet. Their purpose to protect the goal. Similarly, insurance is your first line of protection. And your last line of defence.
Protecting your income and any loved ones is a priority when it comes to building financial resilience. It can have rippling effects if you pass away, become ill or suffer an injury. That's why insurance is essential. So even if the worst happens, you or your loved ones are protected.
Defender
Defenders protect their territory by forming a strong barrier in front of the goalkeeper. Cash can do the same thing by providing a solid foundation to start from.
Ideally, you want at least three to six months of your usual expenditure in cash as an emergency safety net to cover the essentials in an easy access account, ready to help you with the unexpected. If you’re retired, we think you should hold one to three years’ worth of essential expenses. For those in drawdown, consider erring on the side of caution by having the full three years’ worth of essential expenses.
Then consider using fixed-term savings for money you plan to spend over the next five years, like on a wedding or new home. You can fix your savings rate from three months to over five years, often at a better rate of interest. Though you can’t normally access your money until the term ends.
And make sure to research the best players on the market so you get the best interest rates possible.
Midfield
Midfielders control the game. There are lots of different types of midfielders, but all need to link together and work in both defence and attack.
In saving and investing, this is like the different types of account you can have.
Think of your pension as your central midfield engine – the go-to and backbone of your financial future. Focusing on building a large enough pension pot will help you to retire on your terms.
The rest of your midfield depends on your tactics or goals. Buying a first home? Perhaps the Lifetime ISA is worth looking at. Want to shelter your investments from UK tax? Then you could consider a Stocks and Shares ISA.
There are lots of different accounts you can choose from. Which one to choose and their benefits will depend on your goals and circumstance.
See the different accounts we offer
Attackers
Investing is going on the attack. If it’s cash you don’t need in the next five years, investing gives you the chance to make your money work harder than sitting in cash. Although this step might be the most exciting part, it doesn’t come with guarantees.
Unlike the security offered by cash, investments go up and down in value, so you could get back less than you put in.
Investing is also the last part to building your financial resilience, once you've got the other parts of your team sorted. After all, there’s little point having a world-class striker if you can’t get the ball to them.
And when building an attacking team, it’s important to have a mixture of skills.
Building an investment portfolio is the same. It should be diversified and include a range of investments from different industries and geographies. This helps smooth out market ups and reduces your risk.
Manager
Every team needs someone to guide them along the way. Expert financial advice can help you save and invest with confidence – if you need it.
Some football managers are hands on, some are hands off. Similarly, with our advice service, you can pick whether you’d like one-off or ongoing advice.
You can also get help picking your adviser if you’re unsure – why not call our advisory helpdesk to check if you’ll gain value from taking financial advice and to find out more about our advice charges.
Referee
Referees often don’t get the recognition they deserve. But they’re the bread and butter of every game. They maintain order on the field, making sure the game runs smoothly, fairly and to time.
Setting a budget can help you put rules in place to ensure your financial goals follow a game plan, while making sure you don’t get too many red cards along the way.
As the women of the World Cup show, you can score goals with determination and a game plan, you just need to take the first step onto the pitch.
Make your dreams a reality and ‘Switch Your Money On’ today.