You may have heard the saying “What did the Greeks do for us?” in relation to democracy, language, science, medicine, and so much more. However, there are various financial lessons from Greek philosophers that can help us shape the way we manage our money. We look at how you can apply some ancient wisdom to your modern-day lifestyle.
At the time of writing, the Paris Olympics has been happening. Originating in Ancient Greece about 3,000 years ago, this famous sports tournament was revived in 1894. The four-year period in between was called an Olympiad and was the method of counting years. This interval is still used in today’s Olympic games and helps sportspeople to prepare. Every modern-day Olympian starts with a goal, which we can also apply to our savings strategies.
“Day by day, what you choose, what you think and what you do is who you become.” Heraclitus
Expect change when you are making life plans
It’s a fact of life that change is inevitable and often unexpected. Although we can plan for expected events, such as a wedding or the birth of a child, we also have to factor in other eventualities. Life will always bring various challenges because few things stay the same.
When you are reflecting on your life plans, it’s important to make sure you have a financial buffer. Even if you start with a few pounds each week, build a ‘rainy day’ fund that’s separate to your other savings accounts. Should you be faced with an emergency, this will give you a valuable pot of money to pay for things like repairs. You can’t put a price on peace of mind.
It’s also worth checking if your insurance policies will cover you should you fall ill or if your partner was to pass away unexpectedly. There are various forms of protection available that will pay out a lump sum or income, providing you with another essential financial buffer.
“Change is the only constant in life.” Heraclitus
Plan how you want to live today and tomorrow
Many people think of physical assets when they plan their wealth, such as property, cars, clothing and jewellery. Some people prefer to spend their money on experiences, such as day trips, holidays or longer periods of travel. There are also those who prefer to seek financial freedom, so they no longer have to worry about money.
The key to managing your wealth is to make sure you have enough to support your lifestyle today and your future retirement. After years of working hard, you should be rewarded for your efforts. Not having to worry about how you are going to pay next month’s bills is a gift.
“Wealth consists not in having great possessions, but in having few wants.” Epictetus
It’s what you do with your wealth that matters
It’s up to you how you choose to spend your money. However, if you save and invest wisely, you could make your money work harder. The State Pension only pays out a small amount, so it’s worth considering paying into a private pension too. This extra income will pay dividends in the long run, helping you to maximise your wealth.
Sensible financial planning will help you to create a comfortable or luxurious lifestyle you can enjoy today, as well as when you retire.
“Wealth does not bring about excellence, but excellence makes wealth and everything else good for men, both individually and collectively.” Socrates
What will be your legacy after you have gone
How you spend and use your money today will also affect your family in terms of inheritance. If you want your children or grandchildren to avoid paying high amounts of tax, you need to get inheritance tax advice. There are different ways to mitigate tax, such as trusts and gifts, which can also provide family members with much-needed financial support.
After you have spent many decades earning your wealth, you’ll also want to make sure the right amount goes to the right people. Make sure you have a legally valid, up-to-date Will and letter of wishes, so your legacy is distributed to reflect your preferences.
“What you leave behind is not what is engraved in stone monuments, but what is woven into the lives of others.” Pericles
Wealth Managers, Nottingham and Lincoln
At Balance: Wealth Planning, we listen carefully to our clients to help them put in place a financial plan that’s aligned to their needs. Our team consider your goals and values, reviewing where you are today and where you would like to be tomorrow. Together, we can make your money work harder and help you achieve your lifetime ambitions.
For financial planning advice, get in touch to speak to our financial planners.
Sources:
https://medium.com/@c.farmakis/23-powerful-quotes-from-ancient-greek-philosophers-d3d371e62a01
https://medium.com/mindset-matters/who-said-the-only-constant-in-life-is-change-233fd9e27b87
