Financial planning is a lifelong journey that shifts in focus with each stage of life, from childhood and schooling to early adulthood, midlife responsibilities, and then, retirement.
Hayley Parry, Money Coach and Facilitator at 1Life’s Truth About Money, says it’s vital to distinguish between saving and investing. “Saving is money that you plan on spending in the short to medium term,” she says, typically between three and five years. These savings might go toward a child’s birthday, a December holiday, or a home deposit.
Investing, by contrast, is for goals that extend beyond five years and should aim to outpace inflation. Parry strongly recommends building an emergency fund before moving into investing. “Think of your emergency fund as a financial cushion or shock absorber between yourself and your bank account,”…