Financial Tips

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.

1. Waiting until they retire before getting advice. Some simple strategies employed well in advance of retirement can make enormous differences to the wealth available to you at retirement.

2. Not sticking to some sort of budget – it doesn’t have to be some elaborate spreadsheet, it doesn’t even have to be restrictive. It just needs to ensure you don’t spend more than you earn, or more than you desire in order to achieve your other savings goals.

3. Credit cards -where would we be without them? Probably a lot better off financially! If you aren’t paying off your credit card every month, then maybe it’s time you switched to a debit card. Unfortunately, credit cards can lead to a spiralling debt problem really easily, and really quickly. Don’t leave that decision to change too late.

4. Taking out inadequate or cheap and nasty insurance policies, or maybe even policies that they’ve bought over the phone by a company they have finance with. Usually they’re expensive and are practically worthless. Insurance is a complex area and you need someone who is working for you to get the best product for your circumstances, not someone who is working for the insurance company.

5. Coasting through life with a “she’ll be right” attitude. Unfortunately sometimes we have to be proactive to get what we want or need. Obtaining financial advice early will help you set things in motion so your “she’ll be right” attitude is justified.

Start saving for your future today – this calculator will help.