The ideal financial make up

Mortgage – affordable monthly payments and with equity in the property, minimum 10% equity.

Credit cards – cleared in full every month. Credit card debt is expensive and should be used in emergencies only.

Loans – taken where essential only and paid on time via direct debit (much better to “save and spend” than “borrow and buy”).

Savings – sufficient cash savings to pay for all living expenses including mortgage and all household bills for 3 months, ideally 6 months – normal account type would be a cash ISA.

Investments

• Medium term investments to provide for significant purchase/expenditure
• Longer term investments to provide funds for retirement

Insurance – sufficient life cover to clear all debt and provide sufficient income to replace lost earnings. Additional cover including Critical Illness and Income protection are advisable and should be taken where necessary/affordable

Individual circumstances vary but this would be a good starting point!