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Hi


While I am financially in a good place with no debts and some savings, I have no financial savvy when it comes to day-to-day matters. I tend to spend until I realise I'm low on funds then scrimp at the end of the month... So I'm trying to learning to control my outgoings and plan my finances.


I've done the 'write down daily expenses' thing but it's not really working as I lead a very ad hoc life - every day very different to the next so I'm not really learning how to control my outgoings this way.


I also need to learn more about the bigger picture - savings, mortgages (as I might get one in the future) and pensions. And how to stop being so scared of numbers - big and small!


The courses geared towards those who are learning to manage with debts seem like what I need - learning how to control your spending - but I don't have any debts so don't qualify for these...!


Does anyone here know of any courses that teach personal finance planning? Or would a independent finance advisor teach you to do this?


Cheers

A simple way to control your spending is this - before you hand over cash/credit card, multiply the amount by ten in your head and imagine what you could buy for that amount. It's usually something so much nicer than what you were about to waste the money on, and you only need another 9 similar circumstances to get it.



I don't think I've ever seen a general course for financial planning - I guess most people get the info from parents or by getting a mortgage etc just a little later than your mates (and learning from their mistakes). I'm sure a few financial advisors would be happy to teach you but at ?50/hr min it's worth hiring for advice when you need it but probably not before as products change so frequently.

The Armchair Investor: A Do-it-yourself Guide for Amateur Investors


Frankito's favourite book, apparently. ;-)


Be wary of city advice though. Eighty per cent of all fund managers fails to beat the FTSE 100 index each year but get their money through charging high management fees.


I also agree with Ed on Alvin Hall.

It sounds like you are looking for a way to stop frivilous spending rather than seeking investment advice. Decide how much you need to live off and how much your monthly saving target is. Put the saving target to one side in an account you dont't touch at the start of the month and spend the rest. If you've gone over at the end of the month and raided your savings pot then you know you need to tone it down a bit and have to put more of your salary into the savings pot at the start of the next month to get back on target. You'll get it wrong the first few months but then figure it out. This method should work for you as it involves doing exactly what you do now - spending on an ad hoc basis and then scrimping at the end of the month - the only difference is you've put some cash aside and changed your reference point.


If you struggle with self discipline then tieing money up in accounts that are difficult to access may suit you, though it is better to keep the flexibility if you have the self control.

If you want big picture advice your best bet is to speak to an Independent Financial Adviser. They come in many shapes and sizes. Traditionally they have earned money through commission on the products they sell, which has meant they can be too focused on "selling" investments. This though will stop from 2013. Instead they'll agree a fee with you, and the fund management charges you pay will come down as a result. In the meantime, some IFAs already operate this way, refunding you any commission they earn.


The good IFAs are increasingly now calling themselves Financial Planners. While they still advise on Investments, Mortgages, Pensions etc, increasingly they are focused on producing holistic financial plans for your personal situation


This new website could be useful. It lets you find a fee-based IFA and read reviews and ratings from past clients. You could try this chap - Saul Conway, Holborn

Some great advice here, thanks everyone! What a wise lot you are.


Someone else mentioned Alvin Hall so I'll have to get his book now that it's been recommended twice. The Do-it-yourself investment book seems a bit scary right now but once I start saving, maybe it'll start to appeal...


Senor Chevalier - youve hit the nail on the head with frivilous spending - that's exactly what I need to do. Investment might come later but first things first. Raiding my savings pot is the story of my life (although I tend to just take what I put in at the beginning of the month - it's always on a 'just this month' basis... yeah right)

Someone else has suggested putting it into a hard-to-access account is a good idea.

Peterstorm - I love the idea of multiplying by 10... Makes sense especially as i waste so much money on little bits and pieces...


Frankito - it's indeed the undisputed truth that postmen are about.


In the meantime, I have discovered that Open University does a course in personal finance ~ http://www3.open.ac.uk/study/undergraduate/course/db123.htm

A fairly pricy start to a financially-prudent life though. I really should have paid more attention in business studies at school all those years ago - that came free...


Thanks everyone - I don't think I need a course now... maybe a financial advisor when I'm ready to move up to the next level...!

Just let us know when you've saved up and I'm sure some of the diverse opinions on this forum as to what you should spend it on are as good as any financial advice you might get from a professional in a polyester suit. I certainly wouldn't pay for the advice as that's the only guaranteed way to lose money whether the advice is crap or not.


For example at the moment the UK government index linked savings bond paying RPI + 1 % tax free is probably better than anything else going for a risk averse punter...and it has a 12 month lock in.

There are lots of personal finance blogs and sites which are worth looking at and don't cost anything. Eg; Dave Ramsey; Money Saving Expert; monevator.com.


Even the US ones that have alien terms are still useful for general principles.

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