Whats the best financial advice you have gained/been told?

[Ali7865]

As the title says

 

[garyk]

Buy low, sell high.

 

[LowPrices.uk]

Never a lender nor borrower be.

 

[Annoying Donkey]

Don't spend any money...

 

[Nuno]

Start at least one pension in your 20s

 

[Pish_Pash]

Stop borrowing money from banks, credit card companies etc. to buy discretionary stuff ...I learnt this quite early on in my my life, at a time when credit was starting to gain mainstream traction/acceptance. I've been debt free (no loans, no credit card debt etc.) for most of my adult life (& alas, that's a long time!). If I can't afford to buy it for cash, I don't buy it. One other tip: buy whatever you can secondhand...therefore let some other sucker take the brunt of the depreciation.

 

[garyk]

Start at least one pension in your 20s

Going to against the grain here Nuno, I think having a pension is the *worst* advice that can be given (puts flak jacket and hard hat on )

I asked a financial adviser about 20 years ago the benefit of a pension and was simply told 'you can't get at your money'. For me this is a massive disadvantage, if my money is being mismanaged/not performing all I can do is watch with despair as its value dwindles.

A company pension, different beast if the company matches contributions but private pensions? They didn't exist 100 years ago and its my belief as people get more savvy and there are more investment vehicles available which may see pensions disappear 100 years from now.

All imho of course!

 

[Nuno]

Well, a couple of mine were mature enough in my 30s to buy the freeholds for a company property, putting me on the commercial property ladder.

 

[Walkol]

A company pension, different beast if the company matches contributions but private pensions? They didn't exist 100 years ago and its my belief as people get more savvy and there are more investment vehicles available which may see pensions disappear 100 years from now.

Agree with this. If a company doesn't contribute I see no real reason to have a private pension. You're better off investing in other ways - or more than likely trying to pay the mortgage off quicker!

However if a company will match your contribution it's a relative no brainer. 100% increase in your savings +/- how it performs.

 

[sirearl]

In such an uncertain world getting paid out on a pension is a tad optimistic.
Only people who benefit from pensions are pension companies.

 

[Scott@KarmaContent]

"Get an accountant".

 

[fisicx]

That's not true Earl, there are lots of financial advisors and consiultants making lots of money as well.

 

[LowPrices.uk]

Don't put all your eggs in one basket.

 

[Walkol]

In such an uncertain world getting paid out on a pension is a tad optimistic.
Only people who benefit from pensions are pension companies.

It would also be optimistic to have your money in property, business, banks or under the mattress. All have as much, if not significantly greater, risk than a pension.

With a matched contribution scheme I really can't see any better alternatives.

 

[woodss]

"Don't believe everything you read on the Internet" - Abraham Lincoln, 1855

 

[Pish_Pash]

"Get an accountant".

....via PPH

 

[The Byre]

Never a lender nor borrower be.

Polonius only said that to Laertes, because he was afraid that his son was going to touch him for a fiver!

 

[LowPrices.uk]

Money and family/friends do not mix. Try to keep these apart as much as humanly possible.

 

[sirearl]

That's not true Earl, there are lots of financial advisors and consiultants making lots of money as well.

True.

"Never have so many been mugged by so few for so long."

Alvinski the barbarian.

 

[MikeJ]

Agree with this. If a company doesn't contribute I see no real reason to have a private pension. You're better off investing in other ways - or more than likely trying to pay the mortgage off quicker!

However if a company will match your contribution it's a relative no brainer. 100% increase in your savings +/- how it performs.

Except being able to save that money gross, rather than nett? If you're a 40% tax payer, that's quite a saving (though expect the budget to change that).

Biggest issue with pensions is people not understanding pensions.

 

[Paul_Rosser]

As a business owner your time has a value.

So don't cut the grass yourself if during that time you could generate £100 and only have to pay someone £30 to do it for you.

 

[Ali7865]

The top 5 money advice i would give....

1. Try to save atleast 25% of your income each month, definitely spend less than you earn.

2. When saving think of money as hours of work for e.g if you earn £10 an hour, would you work an hour to buy something you do not need.

3. Money is not everything, try to enjoy things money cannot buy.

4. Try to invest at a young age if you can if not you are never too late to invest.

5. Try to gain as much financial knowledge and general knowledge as you can. Learn more equals earn more.

 

[Walkol]

As a business owner your time has a value.

So don't cut the grass yourself if during that time you could generate £100 and only have to pay someone £30 to do it for you.

I'll cut yer grass for £28

 

[alasdair1982]

Save before you Spend and only borrow for items that appreciate in value and never use credit for anything you wear, eat or travel in (holidays etc)

 

[Pish_Pash]

So don't cut the grass yourself if during that time you could generate £100 and only have to pay someone £30 to do it for you.

But if you were doing nothing in the first place & you fancied a change pottering at home? there's no doubt what you're saying is correct, but equally I don't think too many will mull "Hmm, that grass is starting to get a bit long, ok, I'll put in an extra hour at work & then call a gardener in a day or two" ...most would just go & dig out the lawn mower!

 

[CloudAccountantcouk]

The benefits of Entrepreneurs Relief.

 

[Paul_Rosser]

But if you were doing nothing in the first place & you fancied a change pottering at home? there's no doubt what you're saying is correct, but equally I don't think too many will mull "Hmm, that grass is starting to get a bit long, ok, I'll put in an extra hour at work & then call a gardener in a day or two" ...most would just go & dig out the lawn mower!

And most should have already planned ahead so mowing the grass isn't a distraction which stops them doing work which will push their business forward.

 

[CloudAccountantcouk]

If you're ambitious you will want a large lawn, a ride on and time to cut your own grass!

 

[Paul_Rosser]

Only if you are forest gump, personally like a nice lawn to look at but would much rather be working on the company than looking after it......then you get dogs and a nice lawn is a distant memory.

 

[Pish_Pash]

Only if you are forest gump, personally like a nice lawn to look at but would much rather be working on the company than looking after it......then you get dogs and a nice lawn is a distant memory.

Do you pay someone to walk your dogs?

 

[Paul_Rosser]

When I used to work full time yes, now the wife doesn't work she does it on working days. Weekends if I don't have anything work related to do then sometimes go along.

Point I was trying to make is lots of business owners undertake tasks which they should outsource, as a business owner your job is to push the company forwards (aka working on the business) and not do the day to say stuff (working in the business).

If you have increased the companies turnover enough this week then you can cut the grass, walk the dogs etc.

 

[RickyW]

Only buy one if you can afford to buy two.

 

[japancool]

Only buy one if you can afford to buy two.

Unless you're a one-legged man, this isn't a good idea when buying shoes.

 

[silvermusic]

1) Get an Accountant, they can save you more money than they cost.

2) Lack of cash flow will kill a business long before lack of profit does.

3) Following on from above. Learn to understand cash flow and profit margins, you'd be surprised how many people going into business for the first time don't.

4) Being the cheapest is not a sound business strategy.

5) Don't get precious about stock, it's worth nothing sat on the warehouse shelf. Clear it for whatever you can if it won't shift and use the money to buy something else that will sell.

 

[japancool]

4) Being the cheapest is not a sound business strategy.

A lot of people say this, but it needs to be qualified. Being cheapest for the same product as other people are selling is not a sound strategy.

Look at the likes of Ryanair - their entire business model is about having the cheapest headline fares, but their product is not the same as BA's - although it appears to be, superficially (that is, a flight to, say, Alicante or wherever).

 

[silvermusic]

A lot of people say this, but it needs to be qualified. Being cheapest for the same product as other people are selling is not a sound strategy.

Look at the likes of Ryanair - their entire business model is about having the cheapest headline fares, but their product is not the same as BA's - although it appears to be, superficially (that is, a flight to, say, Alicante or wherever).

True, I'm coming at this from the normal retailing of products which is my trade and has been for more years than I care to remember.

 

[apricot]

Make sure you make a profit when you sell it. Generating revenue doesn't mean it is a profit... My dad

 

[sirearl]

Look at the likes of Ryanair - their entire business model is about having the cheapest headline fares, but their product is not the same as BA's -

You mean their planes don't crash like BA's do.

 

[LowPrices.uk]

Make sure you make a profit when you sell it. Generating revenue doesn't mean it is a profit... My dad

Straightforward advice, but important.

 

[japancool]

Straightforward advice, but important.

And the flip side of this advice, which was hinted at by another poster earlier, know when to cut your losses.