Seven Ds of finances

FOREARMED: SAFEGUARD THE FUTURE PROSPECTS OF YOUR MONEY

- Craig Torr

Financial planning goes beyond managing investments; it encompasses preparing for life's uncertainties. This article addresses key life events and challenges that can impact financial security. From planning for death and disability to managing debt, disease, and detours, each element plays a crucial role in safeguarding one's future. This article explores these and other vital considerations for comprehensive financial planning.

1. Delayed gratification

We all know that delayed gratification is the foundation of wealth building, forgoing the immediate pleasure of spending in order to put money aside for the future. However, practice is different from theory and it's not always feasible (nor enjoyable) to spend a life delaying satisfaction in the present in the expectation of some future reward. If you work hard for your money, it's only natural to want some form of reward that you can enjoy in the present. As such, as much as there's a place for delaying gratification, we also know that enjoying some of the fruits of your labour in the here and now is important for keeping one encouraged and motivated.

Delaying gratification works well if you also acknowledge that time is a valuable and finite resource and that spending quality time with those that you love is not something that should be delayed.

Finding the balance between enjoying experiences and creating memories in the present while at the same time putting aside enough money for the future is critical and takes careful focus.

2. Diversification