RECENTLY the world was transfixed by how the Chilean miners were saved. We saw the people's national pride and how organised they were.
During November many kids wrote matric. It's amazing how many obtain distinctions and the numbers that get a full house of distinctions is astounding. To achieve these results you have to be organised.
Each stage in life has its challenges and rewards, but there's nothing more important than being organised.
People fall into one of two broad financial categories - those who know and those who think they know. I subdivide them into the financially organised and the financially disorganised. Organised people are usually able to provide details about their expenses and particulars about pension plans and savings accounts. Financially disorganised people have some difficulty calculating very basic expenses, such as the weekly grocery bill and will look at you with a baffled expression if you ask about their pensions or insurance plans.
To become financially organised, you need to know what your monthly and annual expenses are and how much money you have in the bank. It is necessary to be up to date with all your affairs and this involves being acquainted with the details of your savings and retirement plans, insurance, tax, estate plans and long-term wealth-creation investments.
It is just as important to understand precisely how the different aspects of your finances link together. Each component of your financial plan needs to fit together and be aligned to form a holistic picture. The biggest mistake investors make is when they make investments in isolation and their portfolio becomes skewed or misaligned.
Planning ahead is essential. You should always have a backup plan for big, unexpected, expenses such as a wedding, a new car or a house renovation. If at all possible, try to "squeeze" an allowance into your annual budget for these expenses. This could even result in a change to your financial strategy.
Only once you understand your present and future economic needs, can your financial plan be considered organised. But I do understand that certain factors can change continually and when this happens, all you need to do is revert to your existing plan to determine what changes need to be made and implement them.
- The writer is financial financial adviser of Bryan Hirsch Colley and Associates. Telephone 011-880-4888 or e-mail bryanh@bhca.co.za
It's crucial to be organised
RECENTLY the world was transfixed by how the Chilean miners were saved. We saw the people's national pride and how organised they were.
During November many kids wrote matric. It's amazing how many obtain distinctions and the numbers that get a full house of distinctions is astounding. To achieve these results you have to be organised.
Each stage in life has its challenges and rewards, but there's nothing more important than being organised.
People fall into one of two broad financial categories - those who know and those who think they know. I subdivide them into the financially organised and the financially disorganised. Organised people are usually able to provide details about their expenses and particulars about pension plans and savings accounts. Financially disorganised people have some difficulty calculating very basic expenses, such as the weekly grocery bill and will look at you with a baffled expression if you ask about their pensions or insurance plans.
To become financially organised, you need to know what your monthly and annual expenses are and how much money you have in the bank. It is necessary to be up to date with all your affairs and this involves being acquainted with the details of your savings and retirement plans, insurance, tax, estate plans and long-term wealth-creation investments.
It is just as important to understand precisely how the different aspects of your finances link together. Each component of your financial plan needs to fit together and be aligned to form a holistic picture. The biggest mistake investors make is when they make investments in isolation and their portfolio becomes skewed or misaligned.
Planning ahead is essential. You should always have a backup plan for big, unexpected, expenses such as a wedding, a new car or a house renovation. If at all possible, try to "squeeze" an allowance into your annual budget for these expenses. This could even result in a change to your financial strategy.
Only once you understand your present and future economic needs, can your financial plan be considered organised. But I do understand that certain factors can change continually and when this happens, all you need to do is revert to your existing plan to determine what changes need to be made and implement them.
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