Money: a panacea for all ills?
Written by Lynda Calver on December 02, 2015.
Here’s another seemingly-flippant cartoon which raises one of life’s biggest questions - can money solve all your problems? It’s tempting to think that it can but if that were the case it would follow that all rich people would be happy which, I think we all know is definitely is not the case.
Money clearly can’t solve all our problems but, and it’s a big but, financial security can make life and the search for contentment a LOT more pleasant. As another quote which does the rounds on Facebook says ‘Money can’t buy happiness but it’s more comfortable to cry in a Mercedes than on a bicycle’.
What is really important about money is that it gives you firstly, security, and secondly, choices. When you have the basics covered and no longer have to spend every waking hour slogging away or worrying about where the next dollar is coming from, you can spend your one precious life doing things you enjoy – spending time with loved ones, being pampered, golfing your way around the world or splurging on fast cars - whatever floats your boat. You also have the benefit of choice – you can choose where to live, where your children go to school, if and when you need medical care and so on.
When you do have money, it is important to look after it to ensure that the security and choices you have now will remain with you throughout your working life and beyond. After all, if you enjoy the finer things in life now when you are young, you are unlikely to want to scrimp and save your way through retirement.
That’s where financial planning comes in. A sound financial plan will do two things:
1. Protect your wealth
Putting in place an emergency fund and taking out protective peace of mind insurance in the form of critical illness cover, life and health insurance will ensure that you and your family will have the financial wherewithal to cope with whatever comes your way. Sadly, cancer, stroke and random accidents don’t distinguish between rich and poor.
2. Create more wealth
A strategic savings and investment plan will enable your money to grow via the magic of compounding, increasing your wealth and offering you security for the future as well as the luxury of choice further down the line, whether those choices involve where your children go to university, where to sail next on your luxury yacht or which country house you buy to retire to.
Of course financial planning also involves making choices, which can be bewildering with so many alternatives to consider. If you’d like assistance making the right ones for you, I’d be more than happy to offer you an initial free consultation to explain how I can help.