Wealth Check: As a relationship ends, will financial heartache begin?

The patient

After splitting up with her boyfriend a month ago, Helen Beckett, 29, wants her financial independence back.

She is anxious it may be a struggle to make ends meet as living costs have soared now that her ex has moved out of the one-bed flat they rented in Crouch End, north London.

"I've yet to feel the full impact of paying for everything by myself," she says. "But I probably need to tighten my belt a bit if I want to continue saving."

Helen earns between £35,000 and £40,000 a year working in charity communications. She has nearly £12,000 in savings with the Halifax – £7,000 in a mainstream account earning interest at 5 per cent, and £4,700 in a cash individual savings account (ISA), paying 5.75 per cent.

She wants to make regular donations to charity and would like to know the best way to do this.

Fortunately, Helen has no long-term debt and pays off her Egg credit card in full each month. She has been paying 2 per cent of her salary into a Scottish Widows stakeholder pension since 2005.

Helen has no protection policies in place. "When I was in a relationship, I knew that if one of us was ill we could survive on one wage," she says. "But now I'm single, I need to consider some protection."

She also hopes to buy her first home in a couple of years' time.

The cure

With a good income and no debts, Helen is well set to ride out any short-term financial problems caused by her relationship breakdown, our panel of independent financial advisers (IFAs) agree.

Long-term goals such as getting on the property ladder can also be achieved.

Savings/investments

With a monthly income of around £1,500 after rent and tax, Helen has enough spare cash to pay for her day-to-day needs and can also afford to continue saving for her future.

Her first move should be to switch £3,000 of her savings into an ISA paying a high rate for this tax year, says adviser Donna Bradshaw from IFA IFG Group, who recommends the 6.3 per cent offer from National Savings & Investments.

Once Helen feels ready to invest over the longer term, say five years or more, she should opt for stock market investment through a mini equity ISA.

As for donating to charity, payroll giving is the way forward. Donations are taken from her pre-tax salary by her employer, with a £100 gift costing a higher-rate taxpayer just £60. "The money will be deducted automatically, so this will help with budgeting," adds Paul White of IFA Belgravia Insurance.

Property

Given her salary, Helen should not have a problem borrowing enough to buy a one-bed flat for around £170,000. But to build up a deposit to give her access to the best mortgage deals, she should aim to save as much as possible before taking the plunge.

"She may think property prices are sky-high, but they are unlikely to fall significantly at the moment," says Mr White.

Retirement

Paying 2 per cent of her salary into a stakeholder will provide Helen with a pension of around £2,500 a year at the age of 65, says Danny Cox from IFA Hargreaves Lansdown.

This isn't enough, he stresses. As a rule, people should contribute a percentage of income that is roughly half their age – in Helen's case, 15 per cent.

It is the contributions made to a pension pot in the early years that make the most difference, stress the advisers.

Protection

Helen should check with her employer to see what insurance is available through her work.

If it offers nothing beyond statutory sick pay, she should consider income-protection cover in case she is unable to work because of illness or injury.