1. Tips, tools & advice on financial planning
Dear Client
Lately I have been coming across more and more clients who are battling to make
ends meet. For many people times are tough with the cost of living increasing at a
rapid rate and annual salary increases barely above inflation. If you find yourself in
this situation you can turn this into a positive and start planning for a brighter future.
Your first step is to ensure you do not spend more money than you earn each month.
Draw up a budget so you know exactly where your money is going every month.
Write down your budget and expenditure and you will be surprised when you review
this at the end of each month. In some instances you will find you are spending your
money on unnecessary items, things that are ‘wants’ and not ‘needs’!
This process will empower you to understand where you are at and what you need to
do to achieve your goals.
The second step is to set yourself goals over the short, medium and long term.
These goals may be to simply stick to your budget and pay off unnecessary debt
over the short term ie next 3 years. Focus on the expensive debt first eg Credit
Cards, Store cards etc. Pay off and cut up those additional credit cards! They are
costing you a fortune in interest and admin fees. Once you have settled a debt use
the saving to pay off the next debt and so on. Imagine the sense of satisfaction you
will find when you see your debt reducing!
Write down your goals and review them regularly, see this as a challenge, something
positive that you can work towards. Share these goals with your loved ones and
friends so that they can support you through this process.
Now not all debt is bad. An example of good debt is a Home which you pay off over
time and which in turn appreciates in value. You should always be looking to buy or
invest in assets that appreciate in value rather than assets which devalue over time.
Once you have paid off your expensive debt you can focus on building up an
emergency fund equivalent to 3 to 6 months’ worth of your income. This will typically
be in the form of a Bank savings, Money Market or Tax free savings account where
your money is immediately available. These savings will ensure you have access to
money to pay for any unforeseen expenses that come round from time to time eg
vehicle repairs, home alterations etc.
Your emergency fund savings will also act as a buffer to ensure you do not deplete
your savings over the medium to long term. More about this next month.
In summary, view your financial life as a roadmap. What are the milestones along
your journey? Where do you want to be financially in 5, 10, 15, 20 years’ time? Set
those goals, stick to them and you will reach your destination!
Next month I will focus on how to go about setting medium to long term goals.

2. Let me know if you require any assistance re your Financial Planning, policies and
Investments, I am here to help.
Until next month take care.
Kind Regards
Michael