Last Updated on March 29, 2019 at 11:26 pm
‘I would like to start managing my money better, but do not know where to start and how to start’. Is a statement I have come across in many forms. I have been accused of ‘providing mathematical answers’. So in this post, I try to do something different.
Where to Start and How to Start?
Let instinct be thy guide! Many, if not most people who are successful in money management have one thing in common – they are prepared for the worst.
So ask yourself which is your worst financial nightmare? I am talking ‘worst’ here – your inability to buy the new Apple product does not count!
🔥Secure your future with our Robo-advisory tool trusted by over 3,500 investors and advisors. From effortless retirement planning to funding your children’s biggest dreams, turn your financial goals into reality. 🔥
Subscribe for money management solutions via email! (Link takes you to our email sign-up form) Join 32,000+ readers in our community.
👉 New Tool Alert! NaviPlan: A Privacy-Focused Multi-asset Tracker and Goal Planner 👈
I am not referring to dreams being squashed but, but your and the existence of your loved ones threatened.
For example,
For someone paying a loan EMI: The worst nightmare could be =’What if I lose my job?’, ‘What if I die tomorrow, sorry make that today?’
The answer to this is
- Adequate Term Life Insurance
- Adequate Emergency fund just for paying EMIs for at least a couple of months
The answer is not a product, but a generic solution. For each generic solution, you can the go about searching for the optmal solution.
My point is, one should know priorities. When it comes to money management, that is quite simple
Step 1 List worst financial nightmare
Ask what can be done about it
Enter this question in Google (or in the search option above!)
Read at least 5 articles to get an idea.
Decide on generic product
Purchase it (after research/paid consultation)
All this is done in one week flat.
Step 2 List next worst financial nightmare
Ask what can be done about it
Enter this question in Google (or in the search option above!)
Read at least 5 articles to get an idea.
Decide on generic product
Purchase it (after research/paid consultation)
All this is done in one week flat.
Step 3 List next worst financial nightmare ……
Here are some generic answers to some common financial nightmares:
‘What if I die today?’ –> Get yourself adequate Term Life insurance.
- why you should not mix insurance and investment
- How to choose a term life insurance provider in 30 minutes!
‘What if I am laid off?‘ –> Adequate private health insurance, adequate rainy day money.
‘What if my children cannot study where they want?‘ –>Understand the importance of inflation and how best to combat it.
‘What if I am not financialy secure in retirement?‘ –>Understand the importance of inflation and how best to combat it.
Questions marked in green are instinctive questions most people are likely to ask. Questions marked in red are not instinctive to many.
‘How best should I save tax?’ Is not a financial nightare! However, for many the universe revolves around that!
Recognising what is NOT important is perhaps more important than recognising what is!
Here is a couple of e-books that maybe of help:
Ebook: Starting Early, Starting Right
E-book on DIY money management
