Considering that everything you eat, everything you wear, where you live, what you drive, where you travel to, and so many more aspects of your life are all related to your finances, most people don’t take the time to plan them effectively. A couple of reasons for this: If you have a problem that needs a plumber, an electrician or a roofer, you will know about it. If you haven’t reviewed your overall finances for a while, you may not even be aware that you have a problem. The other reason is that some of the main aspects of financial planning are viewed as “negative”. I mean who wants to spend time considering potential occurrences like the impact of a fatality, a serious illness or being unable to work due to injury or illness? Or give thought to having sufficient income in your retirement when you haven’t reached 30 yet? This perception of “negative” is often why people subconsciously avoid the topic, often citing “not having enough time” as a reason. (One person that recently told me they don’t have time to look at these things, in the same conversation mentioned how they queued for over an hour at a drive-through for doughnuts!) The same reason explains why people spend regularly on things like the lotto, believing they can win the jackpot, at odds of 10.7million to 1. The same people’s odds of being diagnosed with one of the specified illnesses covered, is 1 in 4 (before age 65!) yet they say “that’ll never happen to me”.
Positive v Negative -This is a natural desire for something very positive to happen and for something negative not to happen. However, these everyday occurrences will happen whether or not someone has the right planning in place. One hour is 4% of your day. Spending that much time even once per year can be hugely beneficial. You get the peace of mind that you are up to date with your planning. You get the reassurance that anything you have in place is the most appropriate for your current circumstances (or if not, the opportunity to make it so). You also get the satisfaction that you are not overpaying for something and are getting the best value. Suddenly, the mystery and uncertainty are removed, along with the stress and anxiety often associated with them. In all my years of doing reviews, I’ve never heard anyone regret taking time to go through their finances, but I’ve heard plenty regret not going through them when something unexpected crops up. Remove “money worries”. Make the time.
Dave Kavanagh QFA has been a Financial Adviser for over 20 years (and a Gym Instructor/Nutrition Adviser before that!) He has done advice slots on RTE 2FM and on TV3 and does the “Ask the Expert” Financial Advice section on mams.ie and has spoken on Financial Wellbeing at all of The Full 360 events around the country with Alison Canavan, and recently at the Women’s Inspire Network conference at the Aviva Stadium. For more information on this topic, just send an email and remember, with Financial Companion, there is no cost and no obligation to arrange a review or get a quotation. Contact us to find out how simple it is.