Let’s Start from the Begining….
By andypape | December 18, 2009
What we should have been doing is starting at the start!! Looking at the money coming in and going out each month. Some people are spending more than they receive but don’t notice because of overdrafts and credit cards. Many people tend to just about break even at the end of the month but don’t save for the future or insure themselves.
So step one is……… to establish the figures for a month and see where you actually stand. Then it’s possible to look through the spending to see where costs can be reduced and where unnecessary spending can be eliminated.
There are loads of ways to reduce your overall outgoings and it usually doesn’t mean a drastic change to your lifestyle.
Step two is…………….. to change the spending patterns over the course of a few months to get things working as efficiently as possible. The target is to have around 10% of your net monthly income ‘available’ for saving and your future.
Step three…….. is to make sure you do something worthwhile with this money! You need to have a good think about what you will likely need in the future and what might come up on the horizon.
The sorts of things to think about are
Debt reduction – this gradually reduces the monthly cost of your borrowing
Short term savings – money available for holidays, one-off purchases, etc so you aren’t reliant on credit cards
Medium term savings – house deposit, schooling costs
Planning for a decent retirement
Insurance to protect you and your family
At least once a year you should go back to step one to fully review your spending. Then you can try to increase the amount you can save to 15%, 20% and ideally 30% of your net income!! This will mean you can do more of the things you found in step three.
I think we have all learnt lessons from what lead us into the financial troubles of the last few years. The problem is that our behaviour is likely to gradually revert back to how it was before and the whole thing will repeat!! We have to seize this chance to turn these lessons into long term habits so you feel in control of your money.
If you want to be included in the Plan B program then please email me at useplanb@inspiredadvice.co.uk.
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It’s Time For Plan B!!
By andypape | December 18, 2009
Have you got things on your money ‘To Do’ list that never seem to get sorted out?
Are you uncertain of your monthly outgoings and what amount you could save?
Have you lay in bed worrying about something financial over the last few weeks?
If you answer yes to any of these then maybe you need to switch to a Plan B!! Plan B needs to be built on very simple, ‘old fashioned’ principles to allow you to be financially more organised, more relaxed and be in a better position for the future.
Imagine how it would feel in three months time if you knew your monthly outgoings, knew that you’re not wasting money unnecessarily and knew how much you are putting away each month for the future.
Starting from January 2010 I will be working with people to make this as easy and painless as possible. There will be monthly webcasts, newsletters, blog updates and email support as well as downloadable materials to use. If you want to be included in the Plan B program then please email me at useplanb@inspiredadvice.co.uk.
I’ve been a financial adviser for almost 15 years and in that time I’ve seen thousands of people’s Plan A’s. Sometimes the client has never really bothered having a plan so it’s kind of a winging it route. Others have had a thought out plan that either never really got established or has not been updated with changes to their circumstances.
I have been as guilty as most financial advisers of not taking enough time on the basics. We all get bogged down in which fund a client should invest in, what tax we could save them and which pension scheme to choose!
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