Your Credit is in Your Hands

From the risk of redundancy to the tightening of credit lines, there is no doubt that times are tough with many of us now facing our own ‘personal recession’. In the backdrop of this global economic downturn where we have all been affected in one way or another, how can you regain some element of control?

How do we do this? Well we can look to Ireland as an example. Ireland is a small, open economy and therefore as a country they have no control over decisions taken by the larger economies of the world. Yet they have a very real and dramatic effect on the economy as a whole. We need only look to the recent US sub-prime crisis and the knock-on effects they have experienced as evidence of this. So what should the Government do to protect the country in this environment?

Well, every year the Minister for Finance produces an annual Budget for the Irish economy. This sets out the ?nancial plans, goals and objectives for the year ahead using the tools available, which include everything from altering tax rates to amending capital expenditure. The purpose of this is to ensure that the economy remains in a stable, balanced position while also implementing strategies that can create wealth for the country in the future.

So even though there are many factors at play in the global economy that Government can’t control, there are also many factors that they can control and it their responsibility to co-ordinate these factors in such a way that helps to make it through global downturns and prosper in periods of global stability.

How can this be applied to you and your ?nances? We know that the decisions made by Government have a massive impact on our lives and even though you can’t control it, you need to understand them and take the necessary steps to manage your way through any economic environment.

Many of the factors that are causing these problems are outside of our control and as such, we have little or no in?uence on them. However, there are factors in our ?nancial lives that are ?rmly in our control and it is these factors that we must plan carefully to ensure that we not only survive the economic downturn, but that we are in a position to thrive when the turbulence thaws.

How many individuals can say that they prepare their own personal economy budget and implement necessary strategies using the tools available to them? Based on our experience, very few people think of themselves in this way but rather continue to plan their ?nances in a haphazard manner as a need or problem arises. By doing this, people will never fully maximise their ef?ciency nor will they be in a position to take advantage of any possible wealth creation opportunities.

It is now vital that people take this holistic approach to personal ?nancial planning and the key to doing this is to understand what the factors are that in?uence your personal economy and more speci?cally what factors you can and cannot control.

The management of a personal economy will be different for every individual and will depend on a wide range of factors speci?c to you. This is where the need for a competent, quali?ed ?nancial adviser comes into play. Through our holistic approach to tax and ?nancial planning, we can help you to deliver a strategy that can put you back in control of your ?nances.

You need to start thinking of yourself as a small, open economy and use the tools at your disposal to protect yourself and maximise your ef?ciency. It’s your personal economy, so plan it, control it and understand it.