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Friday, 09 September 2016 00:00

The poison of your Financial Position

A sound and happy financial situation depends on each person. There are many factors that influence this position such as, values, priorities and future goals. It depends on characteristics such as income, debt, net worth, savings, investment and lifestyle. A financial plan is in effect a composition of important financial decisions, making the right choices for your future financial position. Debt is the single biggest enemy of your financial freedom. It is a well-known fact that purchasing goods and services that could have been paid for with cash, on debt , costs you so much more than it would have if you had budgeted and saved towards it.

Unfortunately sometimes debt is also unavoidable, but that does not mean you should slack on savings and investment. Many students start in debt and as such it is their most pressing financial concern and actually places students at a disposition when entering the market. But don’t despair, there is a way out, financial planners can assist you with a sound financial debt reduction plan while also putting in place a wealth creation plan.

Another reason for unavoidable debt in itself could have been avoided where an unforeseen illness or accident and loss of income could have been prevented or greatly reduced with a sound risk plan. Sadly, Financial Planners often have to put in place a debt reduction plan first before they can create your wealth creation plan.

 

There are a few points to consider before making unnecessary debt choices as this will affect your budget and your future financial position. Perhaps saving towards a deposit or saving to accumulate the full amount will place you in a better position.

 

Debt reduction takes as much discipline as savings. So before entering higher purchase agreements, consider the true cost in line with your budget, decide if it is better to buy it now or save and buy it later. Another fatal decision is not paying debt; it could cost you your credit rating and will affect your future loan situation when a home loan or car loan becomes unattainable.

 

Unnecessary debt accumulated now, can poison your financial wealth position in the future. Plan, budget and protect .Loss of income is the antidote for debt poisoning.

Edited by Natasja du Preez (Internet Marketing Solutions)

WARNING AND DISCLOSURE:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the views and opinions of Ben Charlton. The content is for general information purposes only and does not refer to specific advice to any particular person’s individual financial objectives or financial needs. Before making any financial decisions contact Ben Charlton or your Financial Planner.

Although every effort has been made to verify the accuracy of the information contained in this material, we disclaim all liability, for any error, inaccuracy in, or omission from the information contained in this material or any loss or damage suffered by any person directly or indirectly through relying on this information alone and not speaking to a qualified Financial Planner.

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Ben Charlton

A financial planner can be someone who sees you as a number; they sell you the product that works best for them, they do exactly what you ask for, no more and no less. We are not like that, to us, our job is not to sell you a product, it’s to help you realise your dreams.

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