We really posted a blog on why people do not fund pensions. The point that really required making was why do so many fail to postpone their immediate “wants” and instead use their money now to create a portfolio of investments that will sustain an income later on in life.
There are situations when you may not be able to afford basic life necessities, that’s unfortunate, I know, as in my past I have been at that point myself on more than one occasion.
Too often though this type of excuse requires closer examination and instead the terms “chooses not to afford” or “need to make some changes” would be more appropriate.
After all you are in control of what you do with your money. So you need to think about what changes you need to make to your spending habits and move toward making these changes or face a bleaker financial future.
Assess how you allocate limited resources, like time and money, as this will lead to more prudent planning and allocation of these resources.
I am not passing judgment on how you live your life or how you spend your money – so think of this as a challenge to think and plan more deeply about where you want to go, what we want to do, and what it’s going to take to get there. One less lunch or dinner out, or one less impulse purchase each week adds up quickly. Small changes can mean the difference between forward advancement, and the “I can’t afford” blues.
In my opinion the info graphic posted a few blogs ago based on HMSO research insufficiently takes into account the people who really can afford to but are mis-allocating their resources.
“I spent a lot of my money on booze, birds and fast cars – the rest I just squandered.
Insurance company Liverpool & Victoria recently carried out a survey which concluded that we as a nation are spending over £158bn on “lifestyle essentials” including holidays and satellite TV subscriptions, and that people would rather cut back on other spending by shopping in cheaper stores.
I spent an hour yesterday in discussion with two of my business owner clients, the time was mainly taken up with me putting forward strategies that would assist them accumulate wealth and their responses which were reasons why they said they could not afford to do anything personally and that their business had no cash.
It was a late appointment, so I passed them in the car park later, they did not seem overly impressed with the cars that either I or my staff had, and later drove off in their newly plated massive 4X4 vehicles. Nuff said!