1. The first tip is not really about financial planning at all, but life in general – if you’re not an expert in a particular area, employ someone who is. I take my kids to the doctor if they’re sick, I call an electrician if my light switches are sparking, and I go to an accountant to get my tax done. Don’t dabble here and there, ask a professional’s opinion on how and where to invest for your particular goals.
2. Don’t wait for time to slip by – plan your future goals early to avoid long-term consequences.
3. Devise a budget and try to stick to it – I know budget is a dirty word to most people, but how easy is it to spend too much? Budgets don’t have to be restrictive, just sensible, and they can make a huge difference to your financial well-being.
4. Insure your wealth adequately, and don’t just accept that the cheapest product is your best option. Unfortunately, you get what you pay for in insurance products and quite often the people who think they can claim but can’t are those that took the cheapest cover. I hate paying my insurance premiums too, but I wouldn’t be without it for a second.
5. Pay off your credit card every month without fail. They have hideously high interest rates and can quickly get out of control. If you find yourself losing the handle on your cards, maybe it’s time to say goodbye to them.
Here’s a budgeting calculator to help you get started.