Putting your financial affairs in order against the current financial difficulties is a bit like completing a jigsaw, where the main pieces are savings, investment, protection, and taxation. If you get it right, the picture can be very attractive, but get it wrong and the picture can look very muddled. The problem is that life does not come with a picture on the lid.
- What do you do with your current investments?
- How can you gauge the difference between saving and investing?
- What sort of insurance do you need?
- How much should you be salting away for your retirement?
- Are you paying too much tax?
The answers to these questions are different for each person, depending on individual circumstances, but there are certain strategies that make sense in most cases. If you can identify the broad principles that are relevant to your situation, you can use them to improve your financial standing.
Use this section of our guide in the same way you would use the picture on the box of a jigsaw puzzle. The process is ongoing; you must monitor your plan and adjust it as necessary to ensure that you are moving in the right direction. It is a simple concept – yet many who build the framework for a plan fall short when it comes to implementing it. Don’t be one of them.