Financial Insights & Updates - October 2020
Welcome to the October edition of Financial Insights and Updates.
The difficulties in understanding and achieving a successful financial plan more often than not can be attributed to assigning priorities to your own hierarchy of financial needs. During these times of uncertainty, it is vital that individuals have a framework that accounts for changing life circumstances, such as a new job or purchasing a house and therefore the importance of having a robust financial plan is paramount.
With the above statement I mind we have provided an interesting article that draws on the world renowned work of behavioural scientist Abraham Maslow who in 1943 argued that humans worldwide are influenced by a ‘hierarchy of needs’.
This theory organises human needs across five levels, where needs in the lower end must be satisfied before progressing onto the next level. At one end are physiological needs such as sleep and shelter, while at the other end are esteem and self-actualisation. If we convert that theory into a financial context then as individuals move up each rung of the financial needs pyramid, they must also recognise how their tactics might need to change to best pursue their financial goals.
We would encourage you to read each of the subsequent articles we have provided, especially the ‘Identifying Your Stage on the Investor Lifecycle’ because each article can in some way be linked to this financial needs pyramid.
Remember that you are always welcome to give us a call if you would like to further discuss anything you have read.
The Team at Savanna Pride
Visualizing the Hierarchy of Financial Needs
Behavioral scientist Abraham Maslow wrote “A Theory of Human Motivation” in 1943, arguing that humans worldwide are influenced by a “hierarchy of needs”. This theory organizes human needs across five levels, where needs in the lower end must be satisfied before progressing onto the next level... Read More
Are you investing or gambling?
The potential financial results of investing can feel limitless, and it can be tempting to think that just one stock pick could make you an overnight millionaire. Yes, stock-picking can have a place in your investment strategy, but if you're focused on the allure of a "get rich quick" mentality, you may be gambling, not investing... Read More
When your adult children become long-term residents in your home
In the wake of the COVID-19 pandemic, many young adults have been forced out of work and back into the family home. As the pandemic stretches on, how can you manage the added cost of supporting your children – and help them get back on their feet? Read More
Identifying Your Stage on the Investor Lifecycle
As people age and progress through their careers, their financial goals continuously evolve. Understanding one’s current goals, while also planning for those in the future, are two important elements of financial planning... Read More
Protecting your entire family
You’ve saved hard to build your retirement nest egg. You should be able to spend the money on a well-earned relaxing lifestyle. But all this could be put at risk if your adult children don’t have their own financial affairs well managed, particularly adequate insurance protection... Read More
Why you need a Will
In 2020 COVID-19 has introduced significant health risks and changes to family life. It’s now more important to have an estate plan so you can make sure your family and loved ones are looked after should you become ill or die... Read More
10 tips for clever business owners