Most of us like to think that we are financial snobs, but the truth is, we are closer to financial slobs than we care to admit. In our minds, we are savvy investors who have done proper planning for retirement and our future. 

The truth is, it is all good and well to know what the right financial planning principles are, but it’s a very different kettle of fish actually doing something about it.

Financial slob

This creature is indigenous to most continents and quite common in all urban areas. The characteristics of this creature are:

• They procrastinate when it comes to finances
• They are aware of the importance of planning for retirement but keep putting it off
• Sleepless nights are common
• They never manage to save anything because they always have unforeseen expenses
• Their favourite sayings are ‘as soon as I get some time’ and ‘as soon as I can afford to, I will’
• They do not consider lifestyle creep as a threat to their retirement
• One of their favourite things to do is stick their heads in the sand and hope it will go away
• Most have work pensions and even a private pension plan, but know it won’t be sufficient
• Instead of increasing their retirement contributions with every increase or bonus, they spend it on lifestyle items
• Most of this species, do not have life cover or have insufficient cover to protect their family when they are no longer around
• They did not make sufficient provision for education, so their children will have to go to local schools or universities

Financial snob

This creature is also indigenous to most continents, but is difficult to find in urban areas, is quite fussy, and has very particular habits.

• They are proactive and realise the importance of proper financial planning
• They save money monthly, no matter how small, for a rainy day
• They sleep well most nights because they have a plan in place
• They have regular reviews with their financial planner to keep up to date with their retirement planning
• Their favourite sayings are ‘let’s make time now’ and ‘there is always room in the budget for retirement planning’
• They watch their budgets so they can make retirement contributions
• Most of them have work pensions and personal pension plans
• They visualise their retirement and know exactly the kind of retirement they want
• They realise time is their biggest ally when it comes to retirement saving
• Lifestyle creep worries them, and they try to increase their pension plans every time they get an increase or a bonus
• They want to protect their family and have life cover, even if it is a small contribution. Something is better than nothing
• They understand how expensive education costs are and have been saving since their children’s birth to ensure that they can go to world class universities

Both snobs and slobs have the same financial strains that most do e.g. rising cost of living, but snobs realise that ‘one day when I have extra money’ will never arrive. They watch their budget and make an effort to contribute towards retirement and life cover, no matter how small it is, any contributions are better than none. Chat to your adviser today to ensure you are a financial snob and not a financial slob. [email protected]

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.