In this episode Warren Ingram explains how to take control of your finances and become your own financial advisor.
Warren talks about 3 simple steps to getting started. The first is to have a game plan for your money. This can be as long or as short as you like, but it should lay out what goals you have in life, what financial resources you need to attain these goals and what steps you need to take to get there. Step 2 is a debt plan. Understand your debts and have a plan to get out of debt. This is the hardest part for most people and can take many years. The final step is to start building up your investments.
Part of step 1 is knowing what your savings ratio is. Warren gives a range of percentages, depending on how fast you plan to achieve financial freedom. If you plan to work until you are 65 or older, your savings ratio can be smaller.
Another important aspect of your family financial plan is insurance. Life, health and car insurance are the important ones. The last part is to have a will. Everyone should have a will, no matter what your financial position is. If there is one thing you do today, let it be this.
Disclaimer: Old Mutual Life Assurance Company (South Africa) Limited is a Licensed Financial Service Provider. This material is not intended as and does not constitute financial advice or any other advice and is neither exhaustive nor prescriptive. It does not take into account your personal financial circumstances. Your financial adviser will assess your financial situation and needs and assist you to draw up a plan to help you achieve your financial goals.
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