I was listening to BBC Radio 4’s You and Yours yesterday on the way to a physio appointment (O the glamour). Appearing on the show wasLee Hendrie, a premier league footballer who went bankupt in 2010. He lost £10 million on property deals and was left with debts of around £1 million. It is so easy to live beyond your means. I bet most of us have looked at major earners like footballers and thought that if I was earning £40,000 a week I’d never want for anything. There’s the problem – we do want for things and that desire doesn’t go away and the more we have the bigger and fancier the things become – it’s just a question of degree. Xpro, a charity for ex footballers, tells us that 3 out of 5 ex players will go bankrupt within five years of retiring! That’s a staggering statistic for a group of sports people earning on average £30k per week.
The allure of instant gratification is all too great and we are all tempted to buy whatever it is we want. Living for the moment will ensure that you have problems down the line – it’s just a matter of time. So what can you do about it? If you are sensible enough to see that this is a problem and you want to develop a strategy to ensure you’ll always have enough money for the things that matter most to you, then give me a call.
Saving and investing might not be as exciting in the short term in a way that a new car can be but as someone said, living a life of poverty in retirement is hardly rock and roll either!
By David Gibson
Financial Planning, Independent Financial Advisers, Pension and tax planning. Retirement and savings advice. Pension advice Co Antrim Co Londonderry