Financial strategies

                       
Hello Dear Reader,

When you play a financial game, which let’s face it, we all need to from time to time or in some cases all the time, we have to think several moves ahead. When you become proficient at the financial game, you start thinking twenty or thirty moves ahead and how that one move an change the state of play at any moment. 

Here’s an example of thinking many financial moves ahead. You have a school age child, you have one move to think of …..how am I going to feed them today? Several moves ahead, childcare, school transport cost, school uniform, school supplies, school trips, out growing uniform, PE kit and you know these ‘moves’ are ahead in the game and yet some of us can get caught out by an opponents move as if we didn’t expect it to happen. One move though and it will happen. 

A financial strategy that can be a starting point for anyone is food planning. We get paid monthly and on my pay day, I buy major purchases for the month. I cook a Sunday lunch every week and my meat for that meal is a major expense. So, this month I bought a shoulder of pork, a chicken, beef brisket joint and a leg of lamb…..that was all frozen. I get three meals out of each Sunday lunch and I’ve planned for the weeks ahead.

Also, when I get paid, I stock up on loo rolls, laundry liquid, dog food, toiletries, all of which are expensive and are bought and paid for when we’re paid. 

Other forms of financial planning we practice are being well aware of insurance renewals, hair cuts, appliance renewal ( every eight years in most cases) car maintenance such as new tyre so and in our case regular holiday trips. There isn’t one case where a cost just happens or creeps up on you unless you ignore those future moves that will happen. 

We’re now planning moves ten to thirty years in the future. We’re planning financially for our retirement which could happen in ten to twenty years. Ideally ten years on a reduced pension or to work on for a full pension. The moves will be partly of our own choosing but the opponent’s strategies are unknown to us but we can assume, health and political will. Even though we can’t predict every move, we can pre-empt that there will be some. It would be crazy to do nothing because we don’t know the future so we think a few moves ahead all the time. 

Now, Dear Reader what financial plans can you make. Start with next week or for the rest of the month. It’s a start.

Until tomorrow,

Love Froogs xxxxx 

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7 thoughts on “Financial strategies

  1. I am trying to plan for retirement and also having a new kitchen. I am just at the beginning of my journey but hope I am able to have a retirement before the pension age as i don’t know if i will live that long!!!! lol. I am too scared to put money in the stock market and am relying on savings. I haven’t got much but hope i will be able to save more in the future.We shall see.

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  2. I, too, buy necessities at the first of the month. I also keep a stockpile of most necessary items as well as a large freezer. I try to buy everything at a bargain price. I splurge on grass fed beef, but buy it “by the cow”, at less than $5 a pound.
    We don’t have revolving debt. I, too, keep a tight budget, with a schedule of upcoming items that might need replacing and a bit of an auto slush fund as I have an old car. We are funding the pension plans, helping our son pay for college without debt and saving money for a “retirement home” in Texas.
    Financial planning really makes a difference.

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  3. I really like the way that you have redefined what the term ‘financial planning’ can mean. You have taken it out of the realm of ‘complicated…too many numbers….not for people like me’ into something that can and should be done each day as part of an organised life. Melanie

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  4. Our planning is mostly in the past—we are retired and we have a steady income and a nest egg which is mostly invested, fairly conservatively at this point. I have been retired for 13 years and my husband for about 11. Our biggest worry would be inflation or medical expenses, although we have excellent medical coverage which is paid in full by my previous employer–except for deductibles, co-pays, etc. That does not cover optical and dental, which in our case happen to be significant expenses–nor the hearing aids my husband wears. We are extremely frugal except for travel, and generally take one long vacation and one or two long weekend trips a year. For household items and food I generally plan about 6 weeks ahead, as that is the cycle of sales at the supermarket. I know (after 54 years of marriage) when the big bills are due and plan for them as well. I also know that when it’s time for a new car, it is to my advantage to have a hefty down payment if not cash available for the purchase. We have only bought two NEW cars in 54 years—the rest were all pre-owned, and mostly economical purchases. We have reached the point where clothing purchases are practically nil–gifts from family cover most essentials except shoes. We “gift” each other mostly practical things for Christmas and birthdays, and generally ignore most greeting card “holidays.” We are also do-it-yourselfers, and bought our house in need of fixing up and spent the next 30 years fixing it up, pay as you go style. I garden (less and less every year) but put up what I can for the freezer, dehydrator, or by canning. What I don’t grow, I buy cheaply in the fall and preserve what I can. So far it’s working out. I’ve taught my daughter to be frugal, although she married a spender, and so far the grand-daughter is still learning and not fast enough. (She’s 24 and lives on her own.)

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    • You Americans are just fleeced/robbed due to your insurance system. If you all paid cash/money for healthcare you’d all haggle down the prices. Multi millionaires who have off shore tax free havens run your health care. It’s a sick broken system

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  5. Hi FQ
    I came across your blog via a link on Skint Dad, read a few entries, which I liked, so decided (as I do!) that the best thing was to start at the beginning and read through. So I have just binge read your blog from start to finish over the last few weeks 😱😱 Phew!! What a roller coaster it’s been! Glad to see you have come through relatively unscathed 😎 It has been interesting seeing the themes develop, and sometimes fade away again. There are some cyclical themes too, which are perhaps easier to see when the entries are read in a binge!
    It’s good to see that times are easier for you both now, and you are able to perhaps choose your frugality rather than have it imposed upon you by circumstances. And very excited about the house in France……!

    What appealed to me about your blog was the emphasis on living with less, rather than spending less money but still buying loads of “stuff”, which a lot of the thrifty blogs seem to concentrate on. I prefer a more minimalistic life these days, after a period of enforced ultra frugality, which is hopefully behind us now! I have no desire to return to a more materialistic lifestyle, preferring to have less stuff and do more things, where possible. I just need to get the OH on board now……he hated the moneyless period, and now we have some money coming in (one state pension so not much!) he wants to go back to buying things πŸ˜–πŸ˜–πŸ˜– Work in progress 😎
    Look forward to reading more from you. I now need to look for a new blog to binge on…..

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  6. I’m trying something new: going to the bank when my salary drops, with empy envelopes marked with every expense of the month (rent, food, insurance, phone, bus) pick the amounts up and put them in the envelopes, and have them transfer 1/3 of my salary to the savings account. Then Heading over to the post office to pay the bills, plus put the food budget in the postfinance account.
    It’s a little tedious, but strangely I’d rather do that than e-banking.
    I have to save for our cats nedical expenses (he has glaucoma, we payed all treatments cash up to now and I think they might be some more in the future) the driving license (i’m27 and never had one, too expensive! Around 5000), for a house, and a humans life (not pregnant yet..but we’re talking about planning right!?) so, no time to lose!!

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