Over the years, having moved between different aspects of money, there is one thing that I hear a lot:
“Oh, I could really do with some money advice.”
With interest, I usually ask what specifically they want to know and the answers range between a form of shy guilty “I should know more” to a sort of a ramble about saving and money management.
A big problem when it comes to money is that a lot of people seem to think it is much more complicated than it really is.
The financial industry has not made things easy. In fact, in some cases, the development of a coded financial language is testimony to this communications barrier.
For example, when it comes to pensions, the number of acronyms is simple bonkers; PRSA, AVC, DB, DC, OPS, ARF, BOB, AMRF, TER, OCF!
With so many acronyms, one would think the industry was designed by the US military!
Setting the scene
For those interested in their long-term financial well-being, there are some very simple steps which they can take:
- Be informed – money isn’t complicated. There is an endless supply of available information on products and services. But even when it comes to personal money management, simply reviewing and tracking spending is a great way to getting to grips with where your money goes, what you spend your money on and areas of spending that some fat can be eliminated.
- Be patient! When it comes to planning for both large and small spends, it is important to allocate the time to developing, implementing and maintaining a plan.
- Be modest – if you do not understand something, ask! This applies across the board. Don’t understand something on a home insurance policy? Ask! Don’t understand a phrase on a Life policy? Ask! And ask again and again and again until you understand. Remember, it’s your money, be comfortable that you understand what you are spending it on. And never forget that the only person that really cares about your financial well-being is you! So you need to make sure that you understand the details of what you are spending your money on and the products you are investing in!
Money is not complicated. And, as more and more of us are predicted to live into our eighties and beyond, it is now more important than ever we take the time to be in control of our money. This is best achieved through education, preparation and determination.