PPS Cognition 3 - Page 10

USING MONEY AS A TOOL TO ACHIEVE WHAT YOU VALUE Many people consume every cent of what they earn monthly and then spend some more. They become enslaved to their lifestyles and never take the opportunity to pay themselves. You pay yourself by retaining some of your earnings through savings. This is the 20% that Senator Warren refers to. Budgeting is the allocation of resources. When you know what you value, you utilise your resources - time and money - willingly. For example, life insurance is commonly viewed as a grudge purchase, but have you ever thought of it as a way of leaving a financial legacy for your loved ones - something you value as your final gift, the culmination of a lifetime of work to be passed onto the next generation. RATE YOUR TOP THREE VALUES Budgeting is when a grudge purchase becomes a nudge purchase because you know the value of what you’re paying for – and this is 100% aligned to what you value most. But where do you start? A financial adviser is there to help you start your budgeting process, help you to start paying yourself and to help you align your budget with what’s important to you. PREVIOUS PREVIOUS PPS | COGNITION | EDITION 3 | MAXIMISING your finance for today 10 11 Rate this Article Marlon Goss Head of PPS Specialist Support Services NEXT NEXT PPS | COGNITION | EDITION 3 | MAXIMISING your finance for today