There are thousands of articles written every week about how we should manage our financial lives so that we can live more comfortably and be happy. Many go into great detail about investing, cutting back on what we spend, how to earn more etc…. Some are helpful, more are trying to flog us some financial product we may or may not need.
I want to suggest 5 simple things that, if you could do, would have a huge impact on your life. Before you read them remember that they are simple but they are not all easy to do.
1. Spend less than you earn. Sounds simple but we all know it’s not easy! Unless we prioritise saving a set amount each month, we will not accumulate enough for later life. Saving has to be automatic each month or the chances are it wouldn’t happen.
2. Take time out to think about what you want to do with your life. Figure out what your dreams and aspirations are and then develop goals to ensure you fulfil those dreams.
3. Have a Financial Plan that details how you can use the money you earn most efficiently to ensure you reach your goals.
4. Tweak the Financial Plan every year to take account of changes to your circumstances.
5. Insure yourself against bad surprises (that will inevitably happen). Failing to protect yourself and your family is not really an option.