Spending money is like a one-way valve- it’s easy to spend more, very hard to spend less.

Tech is like this too. Gameboy- awesome. Nintendo Switch- awesome. Going from Gameboy to Switch- awesome. Switch to Gameboy? Not so great. 

People tend to be comfortable with what they’re used to, and improvement is always welcome. Stepping back on the other hand…! 

I’ve got clients who live on quite little, and some who spend a lot. I’m really not sure who is ‘better off’, but I am convinced that it would hurt those used to spending a lot to cut back to the little. 

That’s why financial security is, quite rightly, so important to most people.  

While life is always uncertain, financial planning will reduce the chance of ever being forced to cut back unexpectedly. 

Action point– Think what you’d do if you suddenly had £20k extra a year to spend. What if you suddenly had £20k less? Which are you more sensitive to?