The Sunday Mail
Be open with your partner about your spending habits: Financial infidelity can be financially and emotionally devastating, so play open cards with your spouse or partner when it comes to money.
Set the ground rules for the management of your joint finances at the outset of your relationship, and don’t keep financial secrets from each other.
Have a clear picture of what financial independence looks like: It’s hard to commit to saving and investing if you’re not clear on what you’re working towards.
‘How much is enough?’ is a question that every person must answer for themselves. Be clear on what financial independence looks like for you, and then commit to achieving it.
Sleep on big financial decisions: Avoid making impulsive decisions, especially when the numbers are big.
Whether you’re buying a property, making an investment, or purchasing a vehicle, learn to sleep on your decisions first.
Do your research, seek advice, ask questions, do comparative analyses, and consult with those in the know.
Delaying gratification will eventually become a habit you will be grateful for.
Buy quality, even if it means waiting: The inability to delay gratification can result in us buying poorer quality items which often results in costing us more in the long run in the form of repairs or replacement products.
The Joneses are probably broke: When it comes to money, never compete with those around you.
There will always be people with bigger homes, flashier cars and fancier clothes than you.
Those who engage in conspicuous consumption are generally heavily indebted and often broke.
A financial plan is contextual: Find an independent advisor who can help you develop a financial plan that is fully aligned with your personal objectives. Your plan should reflect your morals and values, your lifestyle goals, and your vision of financial freedom.
If you’re not betting on yourself, no one else will: At the outset of your career, make sure that you know your value in the marketplace and don’t sell yourself short. Learn to negotiate.
Ask for increases. Apply for promotions. Back your own ideas.
Learn how to fail and get back up again. Be entrepreneurial.
Money can make you happy, but only to a point: Despite what we’re often told as children, money can make you happy— but only up to a point.
Research shows that our emotional well-being rises in line with our earnings up to a certain point, after which it drops off.
Our mental health is better if we earn enough money to cover our basic needs and maintain positive social ties. Buy experiences.
Don’t leave free money on the table: There are a number of tax deductions and exemptions available which can help reduce one’s tax burden and it makes financial sense to employ these to your benefit.
Tax planning is an important part of one’s overall financial plan, so be sure that you structure your portfolio so as to minimise your tax burden as much as possible.
Know the value of a passive income: It’s difficult to build wealth if you’re selling your time.
Your time is finite as there are only a limited number of hours in your workday.
Relying on active income means having to physically work for your money— meaning there is a direct correlation between hours and income.
Generating a passive income means that you can earn money even if you’re not actively working. —Moneyweb
