Financial Stress – what keeps you up at night?

Home » Blog » Estate Planning » Financial Stress – what keeps you up at night?
staghorn

Know where you stand – reduce the stress

Seven years on from the credit crunch and the economy still seems to be limping along. It’s the new normal. Jobs that were lost, are probably gone forever, unemployment is dire and the only real growth is coming from SME’s. Yes, there’s opportunity there, but in the meantime family and budgets alike are under pressure. Interest rates are starting to climb again after a long hiatus, and there is every indication that there are plenty more to come – so for anyone with debt that is bad news.
Enough of the misery. Much of the stress created by uncertain finances is fear of the unknown. There is an automatic assumption that if a job is lost, or there is another calamity, the world is going to fall apart, and you are going to be out on the street. Mostly that panic will pass, but it has a nasty habit of interrupting your beauty sleep.
So how can you keep this stress at bay? Here’s a start:

  • Get organised. Have one file with all your important financial documents: Your financial plan and estate plan, Will, Policies, Investments, Medical aid plan details, Short term insurance policies. I call it the ‘Red File’. If you’d like a free 10 page template go here: http://kerenga.com/e-books-guides/. At least if you wake up in the middle of the night, you know exactly where to go to reassure yourself.
  • Have an income statement: (let’s not call it a budget). Know what is coming in, and what is going out.
  • Stress test your income statement: Find out what can be put on the backburner (investments say) and what has to be paid come hell or high water (bond, car, electricity). This will give you a good idea of how big your ‘safety net’ needs to be.
  • Have a safety net. I can’t emphasise enough how important this is. Get your advisor to help you check that you aren’t overpaying on any of your insurance, and put those savings away. If you haven’t had much luck with saving, give this blog a read : Tricked you! Make savings a game : http://kerenga.com/savings_a_game/#more-886.
  • Please take more risk with my money – said nobody, ever. It’s not cool to be clueless. At least know the potential up and downside of your investments and what a realistic return on investment is. Remember, if it sounds too good to be true… Your financial advisor will tell you if it is sound or not.

 

Need help? Give me a shout.

Author Dawn Ridler  

Related Posts
Spring Clean Your Wealth Portfolio
Declutter Over time overgrown plants and dead wood will accumulate in your garden, and if ignored can kill off everything around it. It doesn’t matter how carefully things were planned at ...
READ MORE
Magnificent slipper orchid, photo taken at the 21st World orchid Show, Johannesburg 2014
Specialist/generalist – which one works for you? We have all got so used to increasing specialisation in our lives, sometimes we don’t even question when it’s a good idea when it’s ...
READ MORE
Wealth Ecology – What is it?
Wealth Ecology ™ – What is it? In this age of increased specialisation in every facet of our lives, something gets lost. As a botanist, specifically a plant physiologist, I always ...
READ MORE
Squeezing the last drop out of your investment?
When should you calm down your investment? I get two questions from my clients when it comes to investments at the moment. Either “What can I buy/switch to get the returns ...
READ MORE
Checklist for Financial DIY
You need to find out what you don’t know Partially as a result from pressure from the regulatory bodies like FAIS, and partially as a result of the evolution of Financial ...
READ MORE
Getting the most out of Investments
Squeeze them until the pips squeak In uncertain times it is a natural reaction to make sure your investments are working as hard as you are – so how do you ...
READ MORE
Wealth and the Art of Teflon-coating your emotions
Sabotage! We are often our own worst enemies when it comes to sabotaging our wealth and happiness with incorrect assumptions, misunderstanding and plain financial self-medication. Sure, money can’t buy happiness but ...
READ MORE
Financial Advice – don’t worry there’s an app for that!
Affordable financial advice – the new haves and have-nots The advent of call-centre based life cover came as a result not of competitive premiums (because, on average they aren’t), but by ...
READ MORE
Where’s the money? Creating liquidity using buy-and-sell policies
Shareholder’s agreement – Is it worth the paper it’s written on? If you have more than one partner in your business, you’ll have a buy-and-sell agreement or clause in your MOI. ...
READ MORE
Estate Plan – I’ll be dead anyway!
Aren't estate plans for the elite? Doing even the simplest estate plan seems too much of a morbid undertaking for many of my clients - so can it make any difference ...
READ MORE
Spring Clean Your Wealth Portfolio
Holistic or Specialist – which works better for
Wealth Ecology – What is it?
Squeezing the last drop out of your investment?
Checklist for Financial DIY
Getting the most out of Investments
Wealth and the Art of Teflon-coating your emotions
Financial Advice – don’t worry there’s an app
Where’s the money? Creating liquidity using buy-and-sell policies
Estate Plan – I’ll be dead anyway!
in Estate Planning, Financial Plan, Wealth Ecology Comments are off