Financial Archives - Page 10 of 13

When Do You Take The Hit?

Posted on February 16, 2021

Are you a pain now or pain later person? I know it can be a constant debate in my head. The question always remains, ‘When do you take the hit?’.

Should you cut back on your lifestyle for a few years now to live gloriously the rest of your life? Or should you keep it up and find that 60 comes and goes and you keep chugging along until 70 or 80 years old. It’s your choice. Which will you choose?

It is hard to tell which to do. And it often depends on your mood and the situation. I don’t believe anyone likes to give up the excitement of the now for the potential good later. But if we do not do that, we can find ourselves perpetually working. And that doesn’t sound brilliant either.

I believe sometimes you need to take the hit early on so you can thrive later. The conundrum is that if you get the timing off, there is little you can do about it.

So take it on faith and dial back the lifestyle for a few years while you build your wealth. You will be so glad you did. You may even discover how amazing your life is without all the extras in your life.

When do you take the hit?

Financial Observe Property Reframe your thoughts

Good Debt

Posted on February 10, 2021

Some words just have a bad connotation. While others are riding high with positive brand awareness. Good debt straddles the middle.

For some, all debt is bad or evil or unnecessary. That is how it sits in the bad camp. However, those in the know about debt are happy to have good borrowings in their portfolio.

Generalisations do not help. Often as we get closer to the specifics of a topic we split off into different perception points. This is helpful. We can then better understand our position. Ideally we wouldn’t carry any debt for any purpose. Although, a little bit of borrowed money to help build a company, buy assets and get your future flowing, can be a good thing.

It is always interesting to me when people react to the word debt. It is a word many people want to clarify, if they do not condemn it straight away.

Many people have a difficult personal story involving borrowed money. It is not uncommon for people to have been in sizeable challenging positions when they were young. And unfortunately it is usually bad borrowing that they have collected.

I am trying to raise the awareness of debt, both good and bad, money, finances and life options. That is why I host Money Mindset Monday at 10:30am UK time on Clubhouse. My co-hosts / co-moderators are great and people get a lot of value.

In the meantime, get to know good debt.

Financial Observe Reframe your thoughts Think About It

Your Money Pays For Their Vacation

Posted on January 30, 2021

Make sure you only buy things that are essential to your life or for true happiness. Remember that when you spend, your money pays for their vacation, not yours.

Think about that for a minute. You buy two large pizzas for £25 and that is a fair exchange. You receive two large pizzas with toppings of your choice and they receive the payment they wanted. However, think one level deeper.

When you buy the pizzas, your bank account goes down and their bank account goes up. You have less cash for your vacation and they have more cash for theirs.

Quit giving your money to everyone else so they can have your vacation.

You could buy two large pizzas at the shops for £10. Then put the £15 of saved money into two other accounts. The first £7.50 could go into your vacation fund. The other £7.50 could go into your long term strategic investment fund.

You get to eat the pizzas and you build up your vacation and investment fund accounts. Sure the pizzas may not be quite as delicious from the fridge. And there would be some effort in cooking them. However, you would still have the nutrients and additional funds in your core accounts.

From one simple example, you would have almost £800 across your accounts in one year.

When you’re about to spend, remember, your money pays for their vacation.

Financial Gratitude Progress Think About It Time

How Do You Give Back?

Posted on January 26, 2021

Do you do something for charity, your community, people coming up behind you? It’s good to reflect on this. How do you give back?

I am trying to add more of this into my days. I do it sporadically and I would like to do it in a more structured way. It starts with giving my time to people who are building their careers or businesses. Then, Money for charitable causes and effort for good causes.

Getting clear on how to apportion time and money, and setting those aside for good causes, is a useful exercise. It makes you stop and think about what you do now, what might be good and even how it makes you feel. Should you set aside more time and money? To whom and how should that be done?

Some people are very good with structuring their thoughts around this. I’ve known people to set aside x amount of money and y amount of time. Then they gift that away through the year. Other people simply donate a lump sum and that’s that. All requests after that are denied.

Some people will give money freely but not their time. While others do the opposite. There are those that give 1% of their income while others give away most or all of it, like the incredible Chuck Feeney.

How do you give back?

Financial Observe Time

Education V Entertainment

Posted on January 18, 2021

This battle for our minds was brought up a few times in a room I was in on Clubhouse on Saturday. Education v entertainment was a good way to express the point.

How you spend your time is important. What you do with it is your business in a free society. So you can choose to educate yourself further or you can decide to enjoy the vast array of distracting fun things to do.

Fun things satisfy our desire for that moment. Though it takes longer to get a result when learning. So which one will you choose? Which one is more important overall?

The great thing about education is that you get to keep the knowledge. With entertainment you keep that memory of fun. Though sometimes we forget about the fun we had.

I believe the folks talking about these two words would like more people to be educated. That’s a great ambition. Though it can be difficult. Being entertained is so nice. And it is usually easier than trying to learn and become educated.

We, as the adults of the world, need to help children getting accostumed to learning. Hopefully they will enjoy it most of the time too.

Education v entertainment. On balance, which one are you focused on?

Financial Health & Fitness Observe Reframe your thoughts

Enjoying Lockdown

Posted on January 17, 2021

There are some elements of this whole thing that have a positive component for me. I understand other people may not feel the same. Enjoying lockdown depends on your circumstances and your mindset.

We’ve had some impact on our business but fortunately not too severe. And I am conscious some people have had a terrible experience and worse. These are very sad circumstances and my heart goes out to people who have been impacted in a seriously negative way.

However, today’s post is about trying to find the silver lining in a challenging time.

So some of the things I am grateful for in this time of lockdown are as follows. I get to spend time with our lovely kids at breakfast, lunch and dinner. I grew up on a farm so when school was out in the summer, we would work on the farm all day but eat meals together as a family.

Also, there is no running around to all kinds of events, sports, social engagements, etc. I don’t have to contend with congested roads either. A calmer life can be enjoyed, without the fear of missing out.

The third reason is that currently people are pretty empathetic and forgiving if things aren’t going quite to plan. If things take a little longer or are a little more casual than professional, then that is ok. This is a nice thing to have.

I may not be on a beach in the Caribbean but for many reasons, I am enjoying lockdown.

Action Financial Observe Progress Time Uncategorized

Clubhouse Changes Things

Posted on January 14, 2021

Are you looking for the next big thing? You need to checkout this new app. It has the potential to really shake things up. Clubhouse changes things.

It is a fascinating platform. For those that don’t know, imagine a virtual radio talk show format. Anyone can create a room and speak on their favourite subject. Then, anyone can enter that room and either listen to the host or speak with them. Meanwhile more people enter the room and listen. Some may also join in the chat, or leave to go to another room they just heard was starting.

So, like talk radio or a conference, someone is the host. On this platform, they are called moderators. You can have one or many. And when people join the room, you can tap their photo and read their bio. This way you know more about the person who is there, whether they speak or not. Then you can follow them if they are in a space you are interested in.

It is a fascinating mix of speed dating, conferences, talk radio and social media connections. It looks like it has the opportunity to change everything. If you have something to say, that others are interested in listening too, you can gather a large audience and build your brand. It totally levels the playing field for everybody everywhere.

There is no investment in technical kit like a podcast or YouTube. You can have exposure to 100’s or 1,000’s of people in just a couple of hours. What is exciting, is it is with voice only. No distracting text messaging or over-sensory video. Just listen and speak. It may be much more effective as a communication tool.

Clubhouse changes things.

Financial Observe Time

Save Time Or The Environment

Posted on January 4, 2021

When you have a hole in your clothes or a button pops off, do you mend it, have it mended, recycle it or bin it? Do you save time or the environment?

We have a skateboard which has stiff wheels. Maybe the ball bearings need replacing. Or maybe it is the wheels. More lubricant does not seem to do the trick. The options are to get rid of the skateboard and buy a new one for £30, or keep it and try to fix it.

If we keep it and fix it, we need to spend time on finding and ordering new parts. Then we need to go collect the parts or have them delivered. Once we have them, we need to get tools out and spend time replacing the parts. Hopefully that solves the problem.

The parts might cost £10 and then there is delivery or pick up costs, such as petrol. Then it depends on what you consider your time is worth. You may see it as a monetary value per hour or simply the value of having an hour of time to yourself in a busy week. Either way, there is a cost to you.

So whether it is mending a shirt or a skateboard, we all make these assessments about our time, money and the environment.

Do you save time or the environment?

Financial Gratitude Health & Fitness Time

Happy New Year!

Posted on December 31, 2020

Wherever you are and whatever you are doing, I hope you are making the best of things. Whatever the future brings, I’d like to wish you a Happy New Year!

Although 2020 will be long remembered for many things, we know what the main one, world-wide, will be. Covid-19 and it’s many challenges, including physical, financial and mental health related.

This next year, 2021, will come in with some similar challenges. In addition to masks, social distancing, lockdowns, and tiers, there will be the added component of a vaccine.

Hopefully this will allow us to have a major shift in getting back to regular life.

This time last year, we did not know this major health and economic challenge was going to be impacting us. Now we do know. We still don’t know how it ends, as no one can accurately predict the future at any time.

However, this year, you start by knowing it will be a part of your life in various ways. How will you play the 12 months that you will have in 2021? Knowing what you know, how will you think, what will you do and what things will you focus on?

I hope you have found ways to successfully navigate the challenges you’ll find in the year ahead. May you have peace, prosperity and good health, both mental and physical.

Happy New Year! ?

Action Financial Reframe your thoughts

Don’t Leave It To The Kids

Posted on December 30, 2020

Have you had a look around your house recently? Are there books, clothes, papers, tools or toys that should be tossed? Don’t leave it to the kids to clean up your mess when you are gone.

One of the best things a parent can ever do for their children is to keep their house streamlined. Every year it is easy to add more things to the family collection.

We buy new clothes but don’t always give away or recycle older clothes. We tell ourselves we will still wear the item once in awhile and it is still good. Or the classic thought that we will fit into it after we drop a few pounds this year.

Old sports equipment also gets this treatment. We assume we will use it again one day. I enjoyed squash in my 20’s so I am bound to start it up again in my 40’s or 50’s. Right?

Books you’ve read build a library. But is it a library worth keeping? Would the kids want to inherit this collection? Keep your absolute favourites on a shelf. However, gift all the others to your children now or send those books off to the local library or charity shop.

Take a picture if any items that conjure up fond memories.

Just don’t leave it to your kids to clear out all your stuff.