Planning

With only days left to say goodbye to yet another financial year, it’s rather late to start planning for 2022/23. But is it too early to begin planning for 2023/24? Or for 2033/34?

Financial planning involves dealing not just with spending, but with saving, which may or may not require decision making in relation to investing.

At its most simple finance planning precedes financial planning. Whether we are talking about a primary school student or a millionaire you decide to choose the essential step in financial planning to ensure that income exceeds expenditure (although income, in the short term, can include borrowing).

Many people, particularly those of my generation and older, are proud of the fact that they have never borrowed any money, though they don’t count using a credit card as borrowing. Most of the great fortunes of the world have been built with borrowed money, which was both planned and then well managed.