Aug
5
Top 3 Reasons Why You Should Save At Least Six Month’s Salary!
Filed Under General, Overseas Property Investment, Saving Money, Savings Accounts | Leave a Comment
Here are my Top 3 Reasons Why You Should Save At Least Six Month’s Salary.
Reason Number 1:
If you are employed or self-employed, your job is at the mercy of somebody else. Don’t delude yourself into thinking that management would never have to or want to release you and let you go. Your job is not cast-iron safe and neither are you. You are just a figure, a statistic, to your employer. Yes… I know… your boss is the nicest person on earth and he/she would never make you redundant. GET REAL… they don’t or won’t necessarily have a choice! Their job might be on the line too. Save 6 months salary (net or after tax) and you give yourself a massive boost of self confidence knowing that you’re ready for redundancy should it strike you.
Reason Number Two:
Living hand to mouth, feast to famine, is not good for you or your family. You earn a ton of money, have a great month, quarter or year and then you go spend it all! You need to iron out the peaks and troughs in your financial life. When you are doing well, put some away for a rainy day. When you’re not doing so well, you can take some out to help you survive your (hopefully) temporary crisis. Big companies do this in relation to the dividends they pay out to shareholders each year. It’s a trick called “smoothing”. So what’s stopping you from doing the same? Nothing.
Reason Number 3:
Sometimes in life opportunities come along that you just can’t miss out on. You might have a chance to buy an asset at a knock down price, but only if you have the deposit or the whole amount in cash. Buy that great car from a neighbour at a knock down price, possibly 50% cheaper than you’d get it anywhere else. Or buy an investment property that will, after 6-7 years, make you financially free, for only 15,000 down (and you earn 6% on that cash whilst the property is being built!). A no brainer in my book. But do you know the sad truth? Most people will never be able to take advantage of these gifts because they don’t have any cash in the bank.
I’ve just decided to withdraw the cash from my ISA account (earning a paltry 1% or less) and invest it in an overseas off-plan investment property. The developer will pay me 6% whilst it’s being built, then help me get a 70% loan to value mortgage, pay me a 10% rent guarantee for the first two years following build and then share with me (50/50) the net room rate earned. I am very glad I saved hard to have this money available. I want the same for you too.
That’s why I have given you my Top 3 Reasons Why You Should Save At Least Six Month’s Salary.
Aug
3
Create Your Own Financial Security
Filed Under Saving Money | 1 Comment
You are responsible for your own life and should create your own financial security. It’s not down to Government, your parents, your spouse, your teacher, your priest etc etc. It’s down to you and you alone.
I’m on holiday in Gran Canaria and I’m lying down on the sunbed reading the latest Mens Health magazine. Lo and behold is an article all about finances. One of their top 10 entries in the article is all about something I’ve been saying all along… save up in a high interest savings account at least six months salary. That way if you do lose your job and find it tough to get another, six months should be plenty of breathing space for you.
Don’t delay this tip…. do something about it now. Go through your income and expenditure and see how much you can save towards six month’s worth of NET expenses. The sooner you do, the sooner you’ll have the security of knowing that if you do lose your job, at least you’ll be able to pay the rent or mortgage, bills and have something to eat!