2017

2017

 

I’m not a fan of New Year resolutions, I don’t like diet’s and I cringe when people say they ‘need’ a holiday.

What we all need from time to time is a lifestyle change. Habits are not easy to change initially, but once you do, you start to wonder how you ever lived a different way.

I recently attended a conference where they put up a couple of stats, as they do. The stats were a sad reflection of today’s culture. In summary, 21 million people in the UK have savings of less than £500. The average amount of savings across all adults in the UK is £1,500. With inflation expected to increase next year these savings could be eroded to £1,200.

In short, the vast majority of adults in the UK are only just getting by. They have no emergency fund of cash, no savings or future security and certainly very little if anything invested for retirement.

I totally appreciate the ‘pressures’ of modern life and ‘having’ to buy things just to keep up or get by. But it strikes me that what people really want above anything else is freedom of choice. That’s a massive life changer once you get yourself in the position of having freedom of choice.

If you have freedom to choose whether to work or not, whether to buy that thing you want or not, whether to go on holiday or not, without worrying too much about money, is what many would aspire to.

The only way you can reasonably expect to get there would be to become what we would call ‘financially independent’. That’s the point at which you no longer have to generate earned income because your unearned income (from Pensions, investments, property etc.) is enough to cover your costs.

But to get to that position, you need to have saved and invested very well. The only way that’s going to happen is if you have a plan and some goals. Simply trying to do it by checking what’s left at the end of the month is a strategy doomed from the outset.

Making plans, setting exciting goals, changing your lifestyle to generate that all important surplus income is going to get you to a place of financial security sooner rather than later.

So if this something you think about and would really like to get to grips with please do feel free to give me a call or drop me an e-mail.

Blog by Jaskarn Pawar

Jaskarn Pawar is an experienced and award winning Chartered and Certified Financial Planner. He advises people all over the UK on financial planning and wealth management issues to help them reach solutions to fit their personal needs. You can contact Jaskarn on 01604 211234 or by e-mail on jaskarn@investorprofile.co.uk