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How to match your life cover to your mortgage

fb How to match your life cover to your mortgageAnyone who’s watched Strictly Come Dancing will have had the opportunity to appreciate the importance of keeping all aspects of the performance in synch with each other.  If it matters in a 90-second dance routine then it matters even more when looking at protecting your financial future.  Whether you’re looking at savings, investing, insurance or any other financial product, your overall aim should be to improve your personal wealth and every decision you take should lead towards that goal.  Of course, the Strictly celebrities don’t work on their own, they get help from experienced pros, so when looking at managing the family finance, it can help to get some financial advice from a financial adviser.

Make sure all financial products work effectively together

An example of two financial products which very much need to be kept in step with each other is that of mortgages and life insurance.  The fundamental purpose of life insurance is to provide a financial cash cushion for those who are left behind after a death.  In short it allows beneficiaries to focus on dealing with the emotional aspects of bereavement without facing the additional distress of financial difficulties.  The prospect of a grieving partner having to sell the family home due to an inability to meet mortgage repayments is one that can feasibly be averted with forward planning.

Every time your circumstances change, make sure that your finances stay in synch with them

The key point is to ensure that your life insurance reflects the reality of your outstanding mortgage.  Assuming you take out (or update) your life cover when you buy your first home then the level of cover will reflect the amount needed to take care of the mortgage in the event of a death at that point.  If, however, you increase the size of your mortgage for any reason, then you need to ensure that your life insurance cover will still do its intended job.  The most obvious reason for taking on a larger mortgage is, of course, moving house, but you could choose to increase the size of your mortgage for other reasons.  For example you may want to extend your current property as an alternative to having to move.

Be prepared for life’s slings and arrows

As well as looking at the potential consequences of you or your partner dying, it’s also important to think about what would happen in the event of one or both of you being out of work for any length of time.  This could be due to the employment market or alternatively due to serious illness or accident.  Should any of them happen to either of you, then having the right insurance cover in place could make all the difference to your financial and emotional comfort.  In short it could mean the difference between worrying about paying the bills and being able to concentrate on making a full recovery.

In short, insurance is about making sure that you and your loved ones are protected if the worst happens.  It’s probably one of the few products people buy actively hoping that they’ll never need to use it.  For many people, however, it is an essential part of their overall financial planning and needs to be kept up-to-date in line with their changing needs.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

 

How To Get The Best Remortgage Deals

fb - How To Get The Best Remortgage DealsIn the next twelve months an increase in the base rate of interest is highly likely. Rising house prices caused by the government’s Help To Buy scheme have reached levels that are causing alarm at the Bank of England and a rate rise is the only measure that can slow them down.

Home owners may be considering remortgaging in the coming year before rates rise, and this article is a quick guide to help borrowers think about how to get the best deals they can.

One motivation for getting a new mortgage is for locking in a low fixed rate for the next five years. The lowest APR (annual Percentage Rate) twelve months ago were at an astonishing low of 2.5 percent.

Deals like that are unlikely to come round again soon as interest rates eventually start to rise, but offers of under 3 percent are currently available.

Loan to Value

The rate you are offered will be based on the degree of risk your home loan presents to the lender, amongst other criteria.

Lenders calculate the degree of risk based on the size of the loan compared to the size of the mortgage.

If you are buying a £100,000 property and you can cover the first £50,000 yourself or with help from family members, you will need to borrow £50,000.

This means your Loan To Value (LTV) ratio is 0.5, and the closer the LTV is to one, the higher the risk and the rate of interest will rise accordingly.

Everything you can possibly do to bring the LTV down will help as it will make you more attractive to lenders, save you money in the long run, and put you on a much more stable financial footing in your new home.

The New Lending World

If you haven’t been to see a mortgage advisor in a few years, you’ll notice a big difference as the rules surrounding borrowing have become far stricter since April this year.

The horror stories of irresponsible lending before the 2008 crash, combined with the government’s massive help to home owners with Help To Buy have led regulators to impose stringent new borrowing rules.

Expect your mortgage advisor to want to see your entire financial history, bank records, confirmation of employment, savings, credit reports and more.

Pay off any outstanding debt, even if it’s just £50 on a store card, any black marks on your credit score could be potentially fatal when it comes to securing a lending decision.

Rates

In Britain there are, in general, three types of mortgage deal commonly available, and these are fixed rate, variable rate and tracker mortgages.

A fixed rate mortgage offers borrowers a degree of security, it means that if the base rate of interest rises in the future, the lender will continue to offer the rate that was set and that offer will typically run for five years. It is a way of future-proofing your mortgage against sudden and unexpected mortgage rises and typically most people choose them.

Variable rates have been popular in the last five years. Whereas fixed rates are ‘fixed’ at higher levels to enable the lender to get as much out of the deal as the borrower (arguably more), a variable rate simply responds to the Bank of England’s base rate of interest.

When the base rate is low your mortgage is cheap, and when the rate is high, it’s more expensive. Rates have been half of one percent for six years but this is likely to end soon, leaving many variable rate borrowers seeking fixed rates.

A tracker mortgage is similar to a variable rate mortgage, as it follows the base rate set by the Bank of England but at agreed set margin (perhaps one percent), meaning that a one percent rise in the base rate will not result in a three or four percent rise from your high street lender.

Financial Planning

If you’ve already got a mortgage and you are thinking about protecting your wealth against future changes in the economy it is important to see this as part of your long term financial strategy.

If you are unsure about what next steps to take with your remortgage or would like to speak to a financial advisor.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Financial Conversations Every Couple Should Have

fb - Financial Conversations Every Couple Should HaveIt can be hard to define the point when two people become a couple, planning to be together for the years to come.  When it does happen however it can be an appropriate time to make sure that all practicalities are addressed.  This means ensuring that you and your partner are aligned financially as well as emotionally.  Entering into a relationship means changing from thinking in terms of personal wealth to thinking in terms of family finance.  Here are five questions to get you started on these important conversations.

Do you have savings?

Before you start to align your finances, you both need to be honest to each other regarding the state your finances are currently in.  This means that both of you need to be clear about your financial assets such as savings and their financial liabilities.  You also need to be clear about your attitudes to money.  From this point on you’ll be working to a joint financial plan and it’s crucial that you’re both comfortable with it.  With this in mind, this may be a good point to get some professional advice from a financial advisor.

How would you describe your attitude towards investing?

There are a variety of different investments available and choosing the right one(s) for you depends on a number of factors including your goals, your anticipated time frames and your tolerance for risk.  If you’re to develop a financial plan with which you both feel comfortable, then you need to agree on an investment style with which you both feel comfortable.  You’re also going to have to reach an agreement on how to manage the practicalities of investing.  In other words, who is going to take responsibility for choosing investments and going through the process of buying them?  Even if one partner takes day-to-day responsibility for this, the other partner needs to be in touch with what is happening.  They also need to know where to find all relevant documents in the event of something happening to their partner.

What would happen if one of us died tomorrow?

There are basically two parts to this question:  Why do we need life insurance and if what needs to be in our wills?  The answers depend largely on circumstances. When property or children come around, for example, then making provision for the death of one half of the couple needs to be taken very seriously.  In addition to looking at loss of income from working partners, couples may also need to look at the cost of replacing everything each half of the couple does for free, e.g. providing childcare.  This can mean that life insurance is just as important for the non-working partner as it is for the working one.

What would happen if one of us became severely ill/had an accident tomorrow?

This is a fairly similar question to the one of death; however in this case you also need to think about the cost of providing care for the affected partner as well as (temporary) loss of income and their general input to the family.

What sort of retirement do we want to have?

Understanding how you want to spend your post-work years is the first step in working out how much money will be required to pay for them.  This is another area where is can be particularly helpful to get professional advice from a financial adviser.

THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED

 

5 Estate Agent Tricks That Can Add Value To Your Home

fb 5 Estate Agent Tricks That Can Add Value To Your HomeA house can be a combination of a financial investment and a family home.  It can be a store of personal wealth where adults organize the family finance and children get their first lessons in the importance of having savings.  Buying and selling a home can have major financial implications as well as emotional ones, so it can be a good time to get some professional advice from a financial adviser.  If you’re selling a home, it can also be worth investing a little time and possibly some money on your home to achieve the best possible price.  Here are some suggestions to help you.

Create curb appeal

The first impression of a property is usually from the outside so make sure viewers are impressed.  If your garden is a major selling point then it may be worth speaking to a professional gardener for tips on how to make it look its absolute best.  For example some strategically-placed lighting could highlight its best features to visitors arriving for evening viewings.  Even if you don’t have a garden, you will have an entrance door and some quality fittings (number or name, letter box, door knocker…) can make a huge difference to its appearance.

Make sure viewers are comfortable when they arrive

Viewers aren’t exactly guests but they are people you want to stay in your home for a while and be in a mood to appreciate it.  Make sure that there is somewhere obvious and convenient for them to put their coats and consider having some extra pairs of slippers to offer them (which might also be good for protecting your floors).  Be prepared to offer tea or coffee and some quality biscuits and serve them in attractive cups or mugs.

Remember allergy sufferers

Common allergies include nuts, pet hair and pollen.  It’s therefore worth taking steps to remove any of these before viewers arrive.  While fresh flowers can look very attractive and some viewers will love them, they are unlikely to win you any brownie points from people with hay fever.  Green plants and/or fresh fruit, however, are more allergy-safe and also attractive choices.  Remember to put them in containers which match with the overall décor of the room.

Make sure your home passes the sniff test

Any potentially offensive odours need to be properly banished.  With a view to this, if anyone is in the habit of smoking in the house, then they need to stop doing so until the house is sold and the house will need to be thoroughly aired.  If there are young children or pets that may have accidents then you need to have something on hand to deal with them quickly.  If you have a cat who uses a litter tray then it may be worth upgrading to an enclosed one in case your cat chooses to use it when you have viewers.  Empty it promptly outside of viewing times and keep pet cages scrupulously clean.  While it may be tempting to try to use scent to enhance the atmosphere of your home, it’s worth remembering that individuals react to scents differently.  You therefore run the risk of accidentally fragrancing your home with a scent that you love but your viewer hates.  It’s also worth remembering that pregnant women have an enhanced sense of smell and so even light scents may seem overpowering to them.

See your walls and shelves as others may see them

Remove anything which could be remotely controversial, such as an object showing affiliation to a sports team or political organization.  Take a long, hard look at everything else and decide if it is in keeping with the image of your house that you want to give.  A studio portrait of your children could be an attractive feature in a family home but basic family snapshots are probably better moved out of sight, along with children’s paintings and home-made gifts etc.

Don’t Rely On Using The Sale Of Your Home To Fund Your Retirement

Blog 2014 (2)

As with any major reform to savings, pensions and investments, the recent government changes to annuities has been accompanied by a flurry of newspaper headlines, ranging from the alarming to the surreal.

Deciding how you will fund your retirement is one of the biggest financial decisions you will ever make and one that cannot be taken lightly, but often the information overload that happens courtesy of the media can leave savers feeling more uncertain than ever.

It is tempting in this situation to rely on a tried and trusted method of funding a retirement, the accumulation of equity in a property, but this might not be the safest and most effective way of paying for a retirement.

Using a property to pay for retirement is always gamble because savers have to make educated guesses on the robustness of the property market in the future when they eventually come to sell.

There might be scope for many people to profit if they act fast, sell up when property prices are high, and invest the equity.

The Bank of England’s Monetary Policy Committee may put up interest rates after the next general election and there is no guarantee that Help to Buy will continue in its present form, with some schemes encountering difficulties already.

So what other options might there be?

In the last year the pension market has undergone some radical changes and the options for savers and those who are due to benefit from their pensions have increased.

With the end of compulsory annuities on most pensions, savers have more flexibility to draw down a lump sum of their nest egg at retirement.

Paying off a mortgage or wiping out remaining debt in one go might be more cost effective solution for retirees than simply being tied to an annuity payment.

In September it was announced that pensions could become tax efficient savings funds, not just designed for paying an income later in life but also a way of passing on a pension pot to the next generation.

From April, depending on your age when you die, you may be able to leave your pension fund with no tax to pay on it (previously most inherited funds were taxed at an eye watering (previously it was taxed at an eye watering 55 percent).

It is not possible to leave an annuity policy in a will to a family member and as a result of the announced changes, annuities may become even less attractive as a means of managing ones pension income.

Some 12 million people in the UK in defined contribution pension schemes will be affected by the changes and they will be able to pass their pensions on without incurring penalties for inheritance tax if they are over the age of 75 when they decide to do so.

The government, with next year’s election in mind is looking to offer the electorate a reduction in the taxation burden on pensions and inheritance, and in this way they have given future retirees a lot more options.

If you are uncertain about how best to provide for you and your loved ones in the future, it might be an idea to seek some advice to give you an informed opinion on your possible choices.

To find out more about the options available, speak with a financial advisor.

 

 

 

 

 

Out of Debt, With Savings and On Track for Retirement. So What’s Next?

fb Out of Debt, With Savings and On Track for Retirement. So What's Next

If, in the past five years, you have managed to pay off your debts and start to plan for retirement, you are in a small minority. Despite the urgings of the Chancellor for the nation to live within its means, personal debt was reported last year to have hit record highs.

Britain’s love of spending and the availability of credit has left us more indebted than we were in 2008, but for a diligent few, the rewards of a debt free existence can be savored.

Getting to a level of financial health that means that credit card spending is under control, personal loans are gone, a mortgage is paid off and you have a retirement plan with regular pension contributions may seem like financial utopia, but are there other financial needs to take care of?

Savings

The more you save, the more financial security you have, as savings are a way of future proofing yourself against the possibility of redundancy, illness, or major life change that disrupts your power to earn.

Financial expert Alvin Hall suggests that everyone who is earning should try to put away ten percent of their income each month since, according to Hall, the evidence points towards the fact that savers do not notice ten percent leaving their total disposable income.

Keeping track of your spending

One tried and tested method of understanding where your money goes, and subsequently how you can protect it and make it work more effectively for you, is the keeping of a spending and saving diary.

The problem with spending is that we do so much of it unconsciously and we have little idea of precisely how much we are spending (or wasting).

If you have a particular savings goal a financial diary or journal can help to motivate you to stick to your targets, and you can also discover what emotional spending triggers there are. Some people spend too much when they are happy and others fritter money away when they are stressed or miserable.

Goal Setting

A financial diary can help you with goal setting, particularly with big ticket items such as paying off the mortgage, or paying for a child’s university fees.

If you are going to set goals then it’s advisable for them to be SMART (Specific, Measurable, Attainable, Realistic, and Timely). This means that you need to Specify how much you want to save (ideally to the last penny), and to track (Measure) how much you are actually saving each month.

Your saving goals need to be Attainable and Realistic: There is no point in trying to save 80 percent of your income each month if your goal is impossible. All you will teach yourself is that saving is impossible, and this will lead to a downward spiral of declining motivation and you’ll actually be in a worse situation than when you started.

Keeping your goal Timely, or within a particular time frame (say, six months), will also keep you motivated. Things that are too far away (20 years or so), lose their meaning.

Get Advice

Finally, the money you work so hard to earn should ideally be put to work instead of doing next to nothing in a low interest savings account.

Investing is an essential part of any long term wealth protection strategy, which means that it is probably a good idea to get some investment advice before you make any major financial decisions.

This may be a good time to get some financial advice from a professional financial adviser who can give you a clearer picture of your choices and explore how to maximise your money.

If you would like some investment advice, click here for further detail

How To Build A Nest Egg For Your Child’s Future

fb Building a nest eggWhatever your child wants to do when they’re older, preparing a nest egg for them can be a great help when the time comes for them to spread their wings and fly the nest. As an added bonus, showing your child how to manage the family finances in order to create personal wealth can be a valuable lesson in itself.

Start by making a financial plan

Securing your child’s future is so important that even the busiest people should strongly consider making time to get some high-quality financial advice from a professional financial adviser. There are many steps between birth and young adulthood and a number of decisions for parents to take along the way. In particular parents need to think about the benefits of spending money during their child’s younger years as opposed to investing it for their later ones.

Remember that time can turn pennies into pounds

Even if you can only put aside small amounts each month, it’s still worth doing so. Time will help those pennies grow into pounds. With this in mind, the earlier you start saving for your child, the longer time will have to work its magic. If, however, your child is already well on their way to growing up, then it’s still worth putting aside whatever you can for their future needs. Put quite simply, whatever savings and investments you can build for them, it’s going to be better than nothing.

Invest as much as you can afford

Roughly speaking most children will follow a similar path from birth to the end of compulsory education. During this period the key financial question is often whether a child will attend a private school or a state school. In either case the time the need to complete their core education is essentially the same. After core education is finished young people can choose to follow different paths depending on their interests and talents. These paths can broadly be defined as further education, professional training, employment or a gap year. Each of these paths has different financial implications. It’s worth considering, therefore, having as much money as possible available for them. Even if it is not needed, it may make a significant difference to their start in adult life. For example young people who find jobs may be able to get to them by public transport, but having their own transport can make life much easier.

Aim to invest regularly

Even when money is tight, try to look on investing for your child’s future as an integral part of managing the family finances. This may mean taking the decision to tighten other areas of spending in order to be able to plan ahead. Of course, it’s fine to top it up with extra funds from time to time. For example, family and friends could be encouraged to make donations at Christmas and birthdays instead of spending their full budget on presents. These should, however, ideally be extra funds rather than the bulk of them. Having said that, as always, even if you can only afford to set money aside from time to time, it’s still better than nothing.

Look out for the tax man

Children get the same personal income tax allowance as all people born after 5th April 1948. Under certain circumstances children can receive income from children’s savings accounts (which are different to Junior ISAs) without paying any tax on the interest. For this to happen, their parents need to fill in an R85 form. Junior ISAs, meanwhile, work in much the same way as their adult counterparts. It should however be noted that as soon as the child reaches 18, the full ISA will immediately become their legal property to use as they wish. Parents with concerns about how their child will react when suddenly handed a large sum of money may need to look for other ways to prepare for their future. This may be a good time to get some unbiased financial advice from a professional financial adviser.

Tax bands http://www.hmrc.gov.uk/rates/it.htm

Tax on saving’s interest http://www.hmrc.gov.uk/taxon/bank.htm

Rules on interest on children’s savings from funds given by parents http://www.hmrc.gov.uk/manuals/saimmanual/saim2430.htm

ISAs/Junior ISAS http://www.hmrc.gov.uk/taxon/savings.htm

Stay On Top Of Your Money In Just A Few Minutes Everyday

blog-1-1-2For people who lead busy lives, managing the family finances may be just one of many important jobs to do. Fortunately taking care of your personal wealth can take less time than you might think. Here’s a quick guide to what you need to do and how often.

Once a year – review your goals and your progress towards them

All of your financial decisions should help to bring you closer to your financial goals. In order for this to happen, you need to be clear about what they are. Like many aspects of life, financial goals can change through time. For young adults their major goal may be to buy a house, whereas for older adults it may be investing strategically to finance a comfortable retirement. In between there may well be children to raise and provide for. This annual review can also be a good time to get some unbiased financial advice from a professional financial adviser.

Once a quarter – make sure everyone is on the same page financially

In households where more than one person is financially responsible it’s important to make sure that the people in question stay on the same financial page. In an ideal world, people would take all financial decisions together. In the real world however, time pressures can make this impractical. Sometimes families need to divide financial tasks. This may be done equally or with one person taking most of the day-to-day responsibilities. In this situation people can drift apart, financially speaking, which can lead to problems later down the line. To prevent this from happening it’s important that all the people concerned have regular catch-ups.

Once a month – go over all financial statements from that month

Financial statements give you the reality of your financial situation. If you’ve kept on top of your finances then you’ll already have a pretty good idea of what they ought to say. You should, however, check them thoroughly to make sure of this. In particular take the time to investigate any transactions on your debit or credit card that you don’t immediately recognise. They may just be something you’d forgotten, but they may also be a sign that fraudsters are testing your card. This is also a good time to look out for any recurring transactions and decide if there are savings to be made. For example if you see three months’ worth of gym fees on your card but you’ve only managed to find the time to go a couple of times then is it really worth the cost? Finally, take a good look over your shopping receipts for the last month and see if there are any unnecessary expenses you could trim.

Once a week – tidy up your financial paperwork

These days paperwork is as likely to mean digital records as it is actual paper ones, but in either case financial records can only be any use if you can actually find them. Decide whether you are going to use paper records, digital records or both. Whichever you choose take some time out once a week to decide what you need to keep and what you don’t. Anything you keep needs to be stored in a safe place and organised in a methodical way. While you can use your own preferred system remember that if anything happens to you, even temporarily, someone else may need to take over. Anything you don’t keep needs to be checked for personal details and if necessary shredded before being recycled.

Once a day – keep track of your spending

It’s generally easier to see an elephant than a mouse. Similarly it’s often easier to remember big purchases like a weekly grocery shop than it is to remember all the little items. Fortunately smartphones and their cameras have made it much easier to stay on top of daily spending. Implement a straightforward rule that each and every purchase needs to be tracked. If you are given a receipt, photograph it. If you don’t get a receipt, photograph the item itself. At the end of each day, store these photos in a safe place to be reviewed later.

How To Be A Happy Working Parent

working parent blog imageParents are the people who have photos in their wallets instead of cash. It’s an old joke but it often still gets at least a wry smile. No matter how much dads (and mums) might like the idea of being full-time parents, the reality is that bills still need to be paid and for most people that means at least one parent working. Fortunately there are ways to make this a generally happy experience.

Assess your employer

Beer and pizza on Fridays and a company games console may seem like great perks before you have children but after you have them childcare vouchers and company discounts at useful shops may seem more appealing. It may be that your employer does actually offer family-friendly benefits and you just never noticed them in your pre-child days. If they don’t then you could try having a conversation with your manager or HR to see if there is any appetite to introduce them. If there isn’t then there may be nothing to stop you looking for another employer who is better able to accommodate your family commitments.

Get on top of your finances

The arrival of a demanding newborn can overwhelm everything else in your life, but part of keeping that little baby happy, healthy, and safe is making sure that their financial needs are met for at least the next 16 years. If they go on to further education, then you can add another 5 or 6 years on to that.

Remember that not everything needs to be new

Making savings wherever you reasonably can reduces the demands on your income which may, in turn, give you greater flexibility in terms of your employment choices. While newspapers, magazines, the radio and the TV may all carry adverts aimed at convincing you that your baby needs the brand new product they are selling, it’s worth remembering that new items come at a premium because they are new. In some cases this may be justified. For example parents may feel much more comfortable knowing that safety equipment is brand new (and possibly under guarantee). In other cases, however, second hand may be just fine, particularly in the very early days when babies are growing at an incredible rate. Likewise opting for reusable items rather than disposable ones (nappies for example) can also help to save pennies and ultimately pounds. These savings can then be channelled into other activities such as investing for your child’s future or enjoying quality time with them in the present.

Keep on networking

Young children make huge demands on time as well as on money and it can be very easy to slip into the habit of working to pay the bills and then going home to be with the new family. While watching them grow up is one of the joys of parenthood, it’s worth remembering how much value there is in human networks, both professional and social. Take time to ensure that you still stay connected both to your friends and to your colleagues and wider professional circle. Even if you can’t get out to meet them in person as much as you’d like, or even not at all in the short term, make time to get online and catch up with people in cyberspace.

How To Turn Money Into Happiness

money to happinessAs the Beatles pointed out in their 1964 hit “Can’t buy me love”, there are some things money can’t buy, at least not directly. Money can, however, influence happiness – if used wisely. Here are some tips on how using your personal wealth wisely can help to make you happier.

Health

Money can’t buy good health, but it can be used in a variety of ways to maintain it or improve it. At a fundamental level, money can buy a good diet full of healthy, fresh foods. It can also buy exercise equipment. Being able to manage the family finances so that there is money available for day-to-day bills and savings available to cope with unexpected events can also save a lot of stress, which could arguably come under the heading of a health benefit. Money can assist with quality health-care. It can provide the option to pay for quick access to private treatment rather than having to queue on an NHS waiting list. It can also help ease any convalescence period by providing funds to pay for helpful equipment (such as mobility scooters) or personal assistance.

Education and development – investing in yourself

Money can buy you opportunities and experiences which can enhance your professional options. While employers will pay for mandatory training and may assist with training which has a clear relevance to your current career path, quite simply the more money you have at your disposal, the wider your range of options. You can choose to undertake personal study to further your goals or you can choose to do something else completely. Perhaps you might like to have the security of knowing that you have an alternative means of earning an income if you find yourself between jobs in your main career. Perhaps you have dreams of turning a hobby into a business. Perhaps you just want to do something different. In any case, having money can make this possible.

Getting the right advice and skills

Money can buy other people’s time, knowledge, and expertise to make your life easier. Whether it’s getting someone in to clean the house and mow the lawn instead of doing it yourself, or going to a professional adviser for financial advice, spending money on getting the right people with the right skills can save you time and hassle. That frees up time and energy for other activities, which can bring you a whole lot more happiness. Instead of washing the dishes, use money to buy a dishwasher and spend some extra time doing something you enjoy. Instead of spending all day in the garden doing basic tasks like mowing and weeding, get someone else to do them and focus on the tasks you actually enjoy. Instead of spending time and effort to try to work out the best way to manage your money on your own, get help from a professional adviser who can provide financial advice and take some time out with your friends.