How much do you need for a rainy day fund

Umbrella for a rainy day
 
Sometimes the weather folk at the Bureau of Meteorology get it wrong and it rains when you least expect it. You’re caught outside in your thongs without an umbrella and frankly, it’s not fun.

What’s worse than being in the rain sans umbrella? Needing money in an emergency and not having any set aside to cover the cost of an urgent or unexpected expense.

That’s why having some money set aside for unexpected events is advice we give to all clients. This is money that should be readily available in a bank savings account rather than invested.
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Jargon busting the finance dictionary

finance dictionary
 
You’re watching the tele as you get ready for work. The 7.20AM finance news comes on and you dash to brush your teeth.

You know for the next 5 minutes the finance expert is going to stand in front of a ridiculous number of computer monitors and ‘blah blah blah’ their way through the ‘market update’ and use finance jargon you don’t understand. It’s enough to make you weep into your first coffee of the day.

It often seems like the finance industry is created on a house of jargon designed to keep people baffled to the point that they just give up and collectively say ‘take my money’.

Here’s a list of some financial jargon terms you’ll probably come across at some point and what they mean in plain English.
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Diversifying your investments – how to put eggs in different baskets

Eggs in one basket
 
You know the expression ‘don’t put all your eggs in one basket’? This should be the first lesson taught at investment school (if there were such a thing).

Placing your eggs in a variety of baskets or spreading your money across many different investments is diversification 101. If there are 2 lessons everyone should be required to learn before they invest they are:

1.  How compounding works
2. What is diversification and how does it work.

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Procrastination is your financial enemy

Procrastination is your financial enemy
 
Procrastination is one of those human foibles we all do at some point. It’s something we all knowingly shake our heads and chuckle at because it’s not quite the same as being lazy or incompetent.

Weirdly it has almost become socially acceptable. When the tools of our productivity (our laptop and smartphone) also provide our entertainment, procrastination is as easy and tempting.

Even the most motivated people on Earth can tell you about ‘that one time’ they procrastinated. For more normal people we do it regularly over major and minor things and it’s hugely frustrating. When we’re honest with ourselves, we know we could have done better by starting earlier.
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Pay your future self – Best way to save money in your 20s & 30s

Saving money in your 20s and 30s
 
Saving money and getting started investing in your 20s and 30s is something everyone knows you should do. However life gets in the way and saving can take a back seat to fun and entertainment when you’re young.

There’s nothing wrong with clocking up experiences, smashed avo brunches and great dinners out, but living pay-cheque to pay-cheque isn’t sustainable as you get older.

As a (reformed) lover of spending my dosh I’m here to strongly encourage you to start saving now. Today! The reason why is simple, saving money earlier in life has an EXPONENTIAL impact on your long term wealth. Start 10 years later and the maths could make it impossible to get where you want to be.
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We need to talk about finance

We need to talk about finance
 
I love emojis. Admittedly I was a latecomer to the emoji party I (to my shame) thought I was above them. I was then convinced by a clever friend that they’re like modern hieroglyphics and a valid form of communication. I’m not going to argue with that.

What do emojis have to do with finance? Aside from my personal desire to see the finance news reported in a variety of smiley, joyous or sad faces, not a great deal… but this blog is about why we need to talk about finance more.
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How can I save and invest for my kids?

How can I save and invest for my kids?
 
Let’s be honest – saving and investing isn’t something a lot of kids think about. Life is mostly about friends, school, sports, parties, fancying someone, studying, learning to drive and trying to work out what to do with the rest of your life.

When it comes to talking about finances, the vast majority of people want to close their eyes, put their hands on their ears and sing ‘lalalala’ really loudly. Probably because the government, media, parents and well intentioned bloggers do a royal job of making it DULL. And scary. And way more difficult than it needs to be.
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How to quit your job and travel

quit-your-job-and-travel-banner
 
It’s okay to quit your job and travel. Dropping out of ‘the real’ world for a while is good for your health. It’s fine to go and find yourself, travel the world, become a digital nomad or bake cakes every day for 3 months. If your career is holding you back from achieving a dream or a life goal you probably need to quit your job.

I quit my job to travel in November 2015, I was in my early 30s and cruising up the career ladder. I had a great London job at an awesome company, lots of perks and brilliant minds. Not the most ideal time to take time out.

But sometimes life happens and you realise the amazing career is less important than taking time to clear your head, hike up big mountains or start a business selling organic beef burgers at farmer’s markets.
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