INTRODUCTION
A financial plan needs to be flexible in order to cater for different circumstances. What may work for one person may not be ideal for someone else. There is a time to save and a time to invest, and a time to spend.
Keeping a balance on your finances.
Everyone has a plan in place for their finances and if you think this is not true then the saying, “If you fail to plan you plan to fail” rings true.
That means having finances to pay for things which crop up when least expected to. The car breaks down, the laptop plays up, the clothes dryer needs replacing etc.
A sensible person will make allowances for these types of things and have the money available when these things crop up.
This is what is known as a rainy day fund. The rainy day fund is usually in a low risk low interest everyday account. The reason for this is because if you invested your rainy day fund in shares then the day you need top use the money will be the day the markets have taken a dive.
Your age and health are important factors in your financial planning. If you are in your sixties then you are not likely to make plans with a thirty year time frame as would be the case with someone who is in their twenties.
Health is another factor. If your health is such that you may have say less than ten years ro live then again, your mindset in terms of financial planning will be different from that of a person who has no health issues to worry about.
Young people have the advantage of time on their side and therefore have many options. It is a time to sow into the future for whatever is sown during a youngster’s teens and twenties will reap a harvest in decades to come.
As far as finances go it is a time to lay a financial platform for the future. Joining a retirement scheme of some kind is imperative. I think it is fair to say that most countries do have a retirement fund of some kind.
If you are participating in sport then my advice is to enjoy every moment of it because there will be a time when you will not be as strong, as fast, or as agile as you used to be so make the most of what you have and don’t die wondering what might have been.
I have been involved in athletics in the past. I have fond memories of competing in the running races at the Scottish HIghland games. It is a beautiful part of the world.
It costs money to travel, play sport, or to do whatever activity you are involved in so priorities differ from one person to the next. There is no one size that fits everyone.
But what if you have health issues that mean your life expectancy is only 5-10 more years?
If that is the case then you need to make the most of what time you have left and that is not to say that someone who is young should waste their time.
My father sold some land for 30k during the mid 1970s. He used it for various projects around the home but invested most of it. He was sick and died some eight years after he sold that piece of land. A new sleepout and small swimming pool being the main projects. We all helped with the projects.
I can understand why someone who has health issues is keen to tick off items on their bucket list and not just spend their time in an undertaker’s waiting room.
Everyone is to their own as they say and it is up to everyone to do what is right for them.
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