22
Feb
2021

Why financial planning should be as much about “now” as it is about “tomorrow”

A few months ago, I wrote about how budgeting was the cornerstone of financial planning – in essence, that you need to ensure you don’t spend more than you earn, and to put plenty aside so you can enjoy the life you want to in the future. It’s sometimes easy to get caught up in the need to save, save, save. You may think that you should be putting aside as much as you can now to ensure you have “enough” when you retire. But what about today? As the last few months have shown us, we can’t all be completely sure what tomorrow will bring, and not everyone can be sure of a long, healthy life in retirement. And,...
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16
Feb
2021

Why it’s time to retire the concept of retirement

In less than a generation, retirement has changed. Your own parents probably spent their working life in a small number of jobs – maybe just one job for decades – before deciding to put their feet up. There was probably a celebration on a Friday afternoon where the boss handed over a gift and shook their hand. Then they probably left the workplace for the last time, waking up on Monday morning with the rest of their life ahead of them. These days, it’s not quite so simple. Firstly, the notion of a “job for life” is almost obsolete. In the 21st century, employees change jobs (and careers) much more, with periods of freelance or self-employed work also much more...
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20
Jan
2021

Why you should focus on you and ignore market predictions in 2021

At this time of year, news sources are typically full of predictions for the year ahead. Experts gaze into their crystal balls and make forecasts for stock markets, commodity prices, interest rates, and house prices. We lap up this information because these are the experts. They have all the key data to hand, and we believe they have the authority to let us know what might affect our finances in the year ahead. What we rarely do, however, is go back and compare these predictions with the reality. 2020 is a great case study. Last January, which experts predicted that the world would slump into its biggest recession for decades on the back of a global health crisis? Which commentators...
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11
Jan
2021

How to set achievable financial goals (and 4 ways to meet them)

In recent months, you will have read a lot of my thoughts on how to achieve financial freedom, and tips for how to help you live the life you want with the money you have. From the habits of the wealthy to more practical budgeting tips I’ve shared ways in which you can enhance your financial wellbeing. But what is all this for? One of the most important ways to achieve financial security is to know what your goals and ambitions are. When you set goals, you’re motivated to take positive steps towards achieving them, you can measure your progress, and you can make changes as necessary. 5 steps to reach your financial goals Set your goals What, exactly, are...
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16
Dec
2020

12 habits of the wealthy that can help you to improve your wealth

Warren Buffett is the fourth-wealthiest man on the planet. If you do an online search to find out the secrets of his success, you’ll encounter dozens of well-known quotes: “If you aren’t thinking about owning a stock for ten years, don’t even think about owning it for ten minutes” “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful” “Price is what you pay. Value is what you get” It’s all very well reading pearls of wisdom from a man whose current wealth is estimated at almost $80 billion. But how can you incorporate the habits and mentality of the wealthy and successfully introduce them into your daily life? The truth...
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14
Dec
2020

Why great investors have optimism in the future

Last month, we looked at five reasons to be optimistic in 2021 and how optimism can drive positive change. With the new year on the horizon, it’s easy to be pessimistic about how the economy might fare next year. Indeed, the Chancellor himself has warned that unemployment will reach 7.5% in the middle of 2021, and that GDP is not expected to return to pre-crisis levels until the fourth quarter of 2022. Choosing to be pessimistic about your savings and investments, and keeping them in a ‘safe’ place, can be reassuring during difficult times. Many psychological biases come into play, most notably the theory of ‘loss aversion’ which states that humans feel the pain of losses twice as powerfully as...
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