Embracing Reality: The Cynic’s Financial Guide

Money guideWhile it may be beneficial to have a positive outlook on life, when it comes to finances a healthy dose of realism goes a very long way! Here are a few financial realities that will help you in your planning:

Unequal financial marriages never last. Unless you and your partner are both financially independent, relationship or marriage problems will eventually arise even in the happiest of couples. Strive for financial independence; it is the surest path to equality in your relationship.

Your salary alone won’t make you wealthy. No matter how much your boss pays, you will never successfully create wealth without investments. Plan your investments and be disciplined in your spending. In the long term you will build a solid base of personal wealth that will allow you to live the way you want to.

A penniless widow or widower will remarry within a week. Making provision for your spouse and children in the event of your death will allow them to continue enjoying their current financial and personal freedom, even when you aren’t around anymore.

Your children will remain dependent as long as you allow them to. Invest in your children’s education and let their full potential blossom, then allow them to support themselves when they are earning an income.

You can’t expect your children to support you in old age. Just because you made sacrifices for them,  don’t expect them do the same for you when you get older, so make provision for your retirement as early as possible.

Every time you create debt, you destroy wealth. Instead of financing a car at 24% interest, invest the monthly instalment and you’ll be earning interest instead of paying it. By planning your purchases you can avoid the debt trap and increase your net worth.

Insurance companies are not the only option. Wealth creation can be achieved in a variety of ways, and the best strategy is to balance insurance, investments and assets to secure your personal wealth.

You can make money from the bank – ask us how!

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