If I knew then what I know now…

IfIKnewHow many times in our lives do we look back and wonder how things might have been if we’d done them differently? Financial planning is just one area in which many people wish they’d had the benefit of hindsight. But in reality, there are some basic rules that can help most people wanting to achieve financial security. Three of these are to spend less than you earn, protect against disasters and invest wisely. It’s very difficult to argue against these. However, although seemingly obvious and straightforward, they’re not always that easy to achieve.

Spend less than you earn

At various stages in life we experience unavoidable strains on our income. But, if we’re serious about planning for our future, we need to put something away today. How will we have money to spend in our later years if we don’t start saving while we’re actually earning?

Protect against disasters

Protection means ensuring that the right money is available at the right time; when it’s needed most. We all hope to live long and healthy lives, but sometimes people fall ill, suffer critical illnesses or even die too soon. Pre-emptive planning can help ensure that individuals and their families are not financially compromised should the worst happen.

An up-to-date Will is a fundamental part of this. Over 50%* of the adult population does not have a valid Will. Creating one isn’t expensive, but the consequences of not having one or having a poorly written one can be costly.

Spend less than you earn

The final rule is to invest wisely. An effective investment strategy means keeping ‘rainy day’ emergency money separate from the funds you commit to longer-term financial objectives.

Keeping them separate lets you avoid the potential problem of having to dip into your long-term fund at ‘the wrong time’; that is, when markets are suff ering their inevitable short-term fluctuations. Th is approach will leave you free to invest your longer-term fund in assets more capable of providing the rising income and capital growth needed for a more secure financial future.

For many, ‘financial planning’ or ‘wealth management’ sound like very daunting concepts, but getting professional advice and remembering these three simple rules can help you start to ‘see the woods for the trees’. None of us have “enough time” in our lives, but occasionally some time invested today can make such a difference in the future.

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Bromley Rahlke Financial

To receive a complimentary guide covering Wealth Management, Retirement Planning or Inheritance Tax Planning, contact Tamsin Bromley Rahlke of Bromley Rahlke Financial

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