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Ten Tips for Financial Success in Life It is essential that you read the following introductory text, before reading Ten Tips for Financial Success in Life’. Unless you accept full personal liability and responsibility for any actions that you undertake as a result of reading Ten Tips for Financial Success in Life’. or having read to you Ten Tips for Financial Success in Life’, we strongly recommend that you read no further. Introductory Text The following tips are just opinion. They are formed by the lessons learned from my mistakes, from my successes, from my failures, from my professional and personal experience and from listening to successful people I have known. They are not ‘Rocket Science’. They are very basic, but nonetheless I hope they are useful to you in some way. I offer no guarantees that they will work for you. In fact, neither I, nor Preference Trusts and Wills Limited, accept any responsibility or liability for any loss or damage of any kind that anyone may experience as a result undertaking any or all of the suggested tips whether undertaken in full or in part. I hope you find my tips useful. Please email me your feedback if you wish. I will do my best to respond personally, but due to volume, I cannot guarantee to reply to all emails on the subject of my ‘Top 10 Tips’. All the best, Andrew H Williams
Top Ten Tips for Financial Success in Life 1. Always spend less than you earn Try to spend less than you earn, taking into account 2 below.
2. Always save a third of what you earn Try to save one third of your net income, as soon as you earn a wage (Even if it’s a paper round!) Of the third that you save, try to put half away for the long term (Big financial objectives like buying a house, retiring, travelling around the world, your children’s education) Put the other half away for the short term (Smaller financial objectives like buying your first car, going on holiday, buying that sound system, paying for that Open University Course or perhaps a season ticket for the team of your choice) Even if something goes unexpectedly wrong, at least you’ll have a buffer. This may provide you with time to think about your next move instead of being financially pressured into making what can be poor life decisions. If you wish to obtain advice about where to save your money, please ensure that you consult a Financial Adviser, authorised by the Financial Services Authority and to find one, consider number 6 below.
3. Don't take unnecessary risks with what really matters; Make sure that you have a professionally drafted Lasting Power of Attorney arrangement and a professionally drafted Will in place (and review them very three years) Once you are an adult, make sure that you have Lasting Powers of Attorney in place. If you don’t and you have an accident or illness (event) preventing you from managing your monies or making decisions about your welfare, such authority must be sought after the event. This is costly and time consuming as well as the fact that if you are mentally incapacitated by such an event, you cannot choose, who applies for or gains such authority to act for you unless and until you regain mental capacity, whenever that may be. Any assets that you own at the time of said event; may then become vulnerable. Imagine if you run a business for example? Who would run it, if you were hospitalised? If you have dependants, who by their nature, will rely upon you, they’re welfare may also then become vulnerable. Once you have assets and particularly once you have dependants such as a spouse and/or children, it’s absolutely, essential to have a valid Will and any associated Trust arrangements professionally drafted in order to protect loved ones and safeguard assets'. Failure to take these steps, may create unnecessary taxes and other costs, unnecessary delays, financial hardship for your loved ones, arguments between your loved ones as well as the possibility of people benefiting from your assets, whom you would definitely not wish to benefit. Of course, you may wish to consider Preference Trusts and Wills Limited to take care of these matters. You may wish to follow the steps set out in number 6 below or even contact our Regulatory Body, The Society of Will Writers and Estate Practitioners who may help you in recommending another member; but whichever route you choose, we would urge you take action; today.
4. Never a borrower or a lender be Try to avoid borrowing money unless it’s to accumulate wealth. Borrowing usually means that somebody is selling you money for a profit. Only borrow what you can afford without future increases in income. Always seek independent advice about borrowing and protecting the payments and the outstanding sum in the event of death, loss of income and serious illness or accident. Always be very cautious. If the borrowing is to purchase a particular item: Can you save the money and wait? If it’s appropriate, is that ‘item’ insured against going wrong? Imagine still having a debt for something that is now useless. Consider the following; Lets say your interest costs each month on avoidable borrowing (e.g. Credit Cards or Store Cards) is £250.00. Lets say you earn £25.00 per hour after Income Tax and National Insurance. For ten hours every month, you are working to provide profits to a lender. What else could that money be spent on? Could you have benefited by following 1 and 2 above or 6 and 8 below? Try to avoid lending money whenever possible too. Lending money can sour relationships and if it’s not paid back when agreed, your financial welfare may be damaged as a result. I’m not saying: Never. I am saying; be cautious.
5. Give to a cause that matters to you Once a year, try and give your time to a charitable cause that’s close to your heart. Don’t limit what you give to society by donating small change and by paying taxes. (Although do that too, of course) – give your time – mount a challenge – it doesn’t have to be running a marathon – but give your time or your expertise – the value you give and what you gain as a person can both be immense.
6. Only use services that have been recommended to you by someone you trust and respect When you need to seek advice about anything, ask three people (Let’s call them your referrers) whom you respect, for the names and contact details of experts in the required field. Tell your referrers what you are doing. Check with your referrers that its okay to mention their name and if it is: Talk to all those who have been recommended to you and tell them who recommended you to them. Compare them all, ask to check out some of their work if appropriate and only then make your choice. Once you have found a good adviser or service provider, in any field, keep their details. Build a database of quality people to use in future. Not only for you, but also, for all your friends and family. If you visit the Links page on this website; you will find many of my recommended information websites, my recommended professional advisers and my recommended service providers. Also remember services and people can change and if you become dissatisfied or doubtful at any point in future, repeat the process, perhaps even use different referrers.
7. Have insurance for the big risks first When it comes to Insurance, protect the big things first. What is the point of insuring the kettle against breakdown and not insuring your life or your income if you can*? (*Subject to health and budget) If in doubt, follow 6 above and seek an Adviser authorised by the Financial Services Authority, who doesn’t have a stake, in any one product more than another.
8. Never buy on impulse When thinking of buying anything that you’ve seen advertised in any form (Internet, High Street, Television, Radio or Newspapers and Magazines or any other media) don’t buy on impulse. Stop and think. Do I really need it? Can I buy it cheaper elsewhere? Is buying this going to jeopardise another more important financial objective or purchase? Do I need to speak to an independent expert first? (If so revert to 6 above before parting with money) Give yourself seven days to consider and investigate. If its still the right choice and you can afford it, then fine, why not? Also, try and negotiate a discount when buying goods and services. It’s amazing how often you can save money just by asking. You may also wish to consider number 10 below before buying any products or services.
9. Keeping up with the Jones's is a mugs game! Don’t be tempted to ‘Keep up with the Jones’s’. Accumulation of wealth is not just about luck or what side of the street you were born on: Although these things can help enormously of course. It’s also, certainly not, about how things ‘appear to others’. It’s about habits. It’s about the right habits. It’s about being emotionally mature about money, which means delaying gratification, resisting temptation and forward planning. Short term ‘Small pain’ versus long term ‘Big pain’. Pick a day in future. The day when you will do things differently and be in control of your money: Prepare for it. Dream of actually doing the things: Of which you have dreamed. Think of the feeling afterwards of knowing that those things have been paid for. You will begin to look forward instead of back and you may then create new choices for your life. If you need advice on any of the elements detailed on this page, why not follow number 6. There are no guarantees, but following the process is better than taking advice from someone you know little about and will reduce your chances of making poor choices. If you are currently experiencing financial difficulties, don’t despair, remember everything is temporary. However difficult you feel your position is, taking positive action to resolve matters can make a difference to both your actual situation and to your perception of your situation. You could seek professional advice using number 6 above or number 10 below or talk to The Financial Services Authority. (See ‘Useful website links’ elsewhere on this website) The Financial Services Authority is set up to protect you from bad practice and bad advice and very often they help people enormously; as do the Citizens Advice Bureau. (See ‘Useful website links’ elsewhere on this website) As with all things in life, the most important thing is to take positive action. The earlier you work on resolving your difficulties, the more options are available to you, in resolving them.
10. Use www.MoneyExpert.com and subscribe to the email newsletter The site was the brainchild of Martin Lewis, a media presenter and author, who appears regularly on BBC Radio 2 and BBC Radio 4. His tips, his advice, his links to other useful advice websites and other sources are now almost legendary. His website has helped me enormously and many others I know. I would also recommend that you subscribe to his email newsletter, which you can do via his website. I believe that access to his website and his newsletters is essential ‘for everyone; particularly if it positively influences your attitudes and your actions around the subject of personal and business financial matters. I must stress that neither Martin Lewis nor his website, MoneySavingExpert.com are associated with me as an individual or Preference Trusts and Wills Limited. He neither promotes nor recommends my services or the services of Preference Trusts and Wills Limited. I freely and personally recommend Martin Lewis and his website MoneySavingExpert.com as I think they may be as useful to you as they have been for me, many of my friends, my family and my business associates. |
