How financially fit are you?

5 things to consider for financial fitness

We all have our ideas about being fit? For some people it means never missing their early morning walk. Others might go for a run, cycle or eat healthy. Fitness is very personal. You don’t need to be able to run a marathon to be fit. It’s about what your personal goals and desires are.

Just like physical fitness, being fit financially has many areas. The good news is that just like getting into shape you can assess your financial fitness and take actions to improve it. And if you keep your goals in mind as you earn and spend your money, you can achieve a high degree of financial health over the long run. So the question is, how fit are your finances? And how can you measure it?

Joint life insurance

joint life cover

But what do you do if you split up with your partner?

Life insurance can give you the precious peace of mind of knowing that any dependents will be financially secure in the event of your death. But if you are in a couple or partnership, should you opt for a ‘single’ or ‘joint’ policy?

If you are in a relationship it might seem obvious to take out a joint policy, but this is not necessarily the best option. See below for the pros and cons of single and joint policies.

Property Investment

Knowing the Risk, Planning & Knowledge

Fear of Risk

Everybody has a personal risk tolerance profile; some of us are quite comfortable with perceived risk while others are highly risk-adverse.

There are six main fears when buying a property:

  • Overcapitalisation – that is paying too much, being ripped off…there are so many stigmas associated with estate agents and concern around agents ripping off undiscerning buyers.
  • Buying a lemon – everyone fears their property underperforming in terms of capital growth when benchmarked against others in a similar area.
  • Troublesome tenants – who either trash the property or don’t pay their rent.
  • Vacancy problems – a common fear is having a property that’s hard to let with low or no tenant demand.
  • Lifestyle sacrifices –  if the property ends up costing more than initially expected resulting in extreme negative cash flow.
  • Market crash – they fear a ‘bubble’ or downturn will strike as soon as they’ve purchased, creating a negative equity position.

All are legitimate fears but there are actions that can address every single one.