Some are good with money, some not so much.

Thought provoking ideas about saving and spending
Some are good with money, some not so much.

“The more things you own, the more they own you.”

For many people, the words “financial advice” have historically been associated with a complicated, difficult, and ill-understood if necessary part of life.

The reality is that we all have to deal with our income and our expenditure. We have to pay taxes. We have to save for our old age when we can no longer work. And we have to look after our families if we fall ill, or provide for them once we are gone. That’s it, in a nutshell.

Some of us are good with money, some of us not so much. It comes down to how we manage our money, and we can improve with some small, simple steps.

Here are some simple, life-changing nuggets that can help get your head around money and how to handle it … (in no particular order)

  • It’s never too late to start saving and managing your money.
  • Save 10% of every paycheque
  • Don’t spend more than you earn. Stay away from debt unless it’s for life threatening emergencies.
  • Save for the future but not too much. Live in the moment.
  • It’s not how much you make, it’s how much you keep that makes all the difference.
  • My grandma told me - If you didn’t need it when you woke up in the morning you don’t need it when you see it in a magazine or shop window.
  • Pay your mortgage every 4 weeks rather than monthly. As there are 13 lots of 4 weeks you are actually paying an extra month’s payment each year.
  • Save for retirement. A tiny amount adds up. Doing so and increase the withdrawal each time you get a raise.
  • Let wealth accumulation be your motivator, not possession accumulation. Focus on getting off the perpetual earn-and-consume treadmill.
  • Being a well educated, high income earner does not automatically translate into financial independence. It takes planning and sacrificing. Your plan should be to sacrifice high consumption today for financial independence tomorrow.
  • When extra money comes along, pick a percentage and put it in your mortgage.
  • If you can’t pay cash, are you sure you really need it now, or should you rather save for it?
  • Before each purchase, ask yourself if it’s a need or a want. I usually end up not buying it.
  • Learn to love having money in the bank, it’s a great feeling watching your savings grow.
  • Pay yourself first (for pension savings) … you never miss the money out of your budget because it comes out first.
  • Be mindful about spending – that is 90% of getting on top of your money.
  • Debt is good for some things: like your house and your education.
  • There are three ways to have more money - make more, save more, and want less.
  • Always pay off credit cards every month.
  • Saving small amount of money everyday can help you in the future. Don’t underestimate the value of a small amount of money because even though it’s small, compound interest makes it so much more valuable in the future.

The best financial advice was from my dad: When you see something you really like, wait three days before you buy it

Since most of us have to work for a living, everything we buy, we essentially pay for with hours of our life. So the next time you want to buy something, calculate how many hours you had to spend at work to afford this and, only buy it if it’s still worth it to you.

The underwriter of this policy is Old Mutual Alternative Risk Transfer Limited (OMART) a registered long-term insurer.

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