Which Money Type are You?
There are 3 to choose from:
Type 1 - "Not enough"
Type 2 - "Got too much"
Type 3 - "Just right"
If your financial adviser has helped identify which type you are and has a strategy or life plan to deal with the consequences of your type, one which does not involve buying complex financial products then you have no need to read on!
If, however you are unsure which type you are and remain bemused by the fact that financial products appear to be the panacea to solving all problems and achieving all our objectives then please read on.
Let's look briefly at what I mean by each type; The "not enough" type represent people with insufficient money to last their whole lives. Their starting point must be to determine how much IS enough. Why is it that so few people know the answer to this question? Is it, perhaps the fault of the financial services industry, so focused on selling their product range that they have failed to ask the really important questions. Failed to take the time out to help us determine this crucial number - the number which, without its calculation surely renders any product buy pointless?
The solution is not as complex as you might think.
The "got too much" type is almost as serious; hard work, sacrifice and risk taking has lead to the situation where these people have too much money and will die with too much. This represents yet another pay day for the tax authorities. As before it may well be that these people do not know they have too much - spending money is key for these people!
The solution here too is not difficult nor will not require any complex financial products.
The "just right" type are often the most poorly informed; they stress about money all of the time, worrying when they do spend it, worrying about getting a better return on investments, frequently saying no to holidays, new car and so on. There are millions in this position and all targets of the financial press - the money pages which pray on our insecurities. As in the previous 2 cases no adviser has helped determine that they actually have enough. Meaning they can spend without guilt, book holidays, change the car, help family out financially and so on. And, stop worrying.
I'm sure we've all heard the saying "life's not a rehearsal!" As I get older I hear this more and more. So are not the really important questions:
When do you want to stop doing what you don't like and just do what you like?
Which money type are you?
How much money do you need for the rest of your life?
What will you do with your time when you start the next stage of your life?
Planning is so more than just dealing with money.
I read articles by financial advisers on a daily basis - I have yet to read one which covers these issues. Which investment, which pension plan, which ISA and so on are all irrelevant until these questions are addressed. Even then, some would say they remain irrelevant!
Our focus must be on lifestyle - is it not what we all want.? A life worth living, doing what we want to do, when we want to do it AND in the time we have left.
If you are curious about this concept, a concept borne out of many, many years of experiencing complex, financial products which seldom did any real good for the buyer, which we have no control over and which are predominantly "off the shelf" and want to know which "type" you are and what you need to build a life or lifestyle of choice, rather than the one you have, then get in touch.