DON’T YOU FORGET ABOUT ME – A TALE OF A SIMPLE MIND
Reminders on my phone are a necessity. This singular function is one that I use to organise my life, attempt to not forget to do things, and often be in the right places at the right times. I truly believe that I would be lost without this very simple tool. However…
Setting yourself reminders is a very manual process – you create them, set the date on which whatever the task is must be completed. Most crucially, it is all too easy to change the due date on these reminders and push them back over what is, inevitably, a multiple-month stretch. If this process were automatic and unchangeable to prevent procrastination (which over the years I have come to believe is something of an art-form) I am sure that I would achieve more, all within a much more reasonable time span. We are creatures of habit, however, the discipline required in the early stages of forming GOOD habits is crucial in maintaining them for the longer term. This got me thinking about automated finances, which is a concept that I have been hearing and reading about a lot during my studies.
AUTOMATE AS MUCH AS POSSIBLE
Andy Hart, in his excellent podcast ‘Maven Money’ which I would highly recommend, states that automating your finances is one of the most important things that you can do. This means setting up standing orders or direct debits (whichever is more appropriate for the scenario), in order to ensure that your money goes to the places that you want and need it to go. One of the main focuses of this technique is saving, whether this be for a house, other large projects or emergency funds, though the same technique can be used to help yourself in many other ways – desired monthly pension contributions, for example, is another goal that this technique could be used for.
Not only will you never forget to make these savings/contributions ever again, but you are likely to become even better at budgeting for all other aspects of your lifestyle without these funds even coming into consideration – with the comfort of knowing that these funds have contributed towards achieving your financial goals and strengthening your financial plan.
MONTHLY SAVINGS HAS SOME OTHER ADVANTAGES
Some of you may have already seen our short video that explains pound-cost averaging. In a very clear way, this video explains how there can be a great benefit to making contributions to investments on a monthly basis, essentially meaning that you will always end up paying the average price over a particular period of time rather than being at risk of paying over the odds.
It’s ironic how we often forget the things worth remembering but remember the things worth forgetting. I have included our video above about monthly budgeting and setting up your bank accounts, to help make this entire process much easier.
Daniel Liddicott Trainee Financial Adviser
You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to Dominic about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email email@example.com
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