This strategy is for you if you’re employed, especially in a higher-rate tax bracket.

You already work hard, so this strategy is to make your money work smarter, saving hefty tax where possible.

Minimalist life focus

• Cut consumption – Considering your expenses in respect to minimalism, what can you free up to contribute to investments? Fewer subscriptions, simpler lifestyle, and a smaller car can free up 20-30% of your income for better investments.
• Choose sensible accommodation – Forfeit a desire for accommodation you don’t need. Rent if it makes more sense than buying or purchase a property which ticks the boxes rather than being an indulgence.

Financial strategy

• Use salary sacrifice to reduce tax – Not only is this tax free into your pension, but many employers will also match contributions or add what they would’ve paid otherwise in National Insurance – this is free money! Any earnings in a high-tax bracket (such as 40%) can instead be routed to your pension to avoid paying this tax.
• Use ISAs for flexibility – This isn’t as optimal as pension contributions, but it’s the next best thing. Take advantage of ISAs for tax-free investing and withdrawals in the stock market, in an account where you can access it if you need it.
• Automate everything – Set up automatic transfers to your ISA, so investing happens before you have a chance to spend it.

Your goal

This is the period of your life where you most likely earn more than you need, and you have time on your hands to start building wealth and letting your money work for you, your future, or even an early retirement.

Small and regular investments now can be left to silently grow and build wealth for your future, whether it’s your pension or accessible funds in an ISA.