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Reviewed by Leonard Smuts for Readers' Favorite
Financial planning is becoming increasingly complex, along with evolving consumption patterns and priorities. Professional help is needed. It is into this world that Melissa Cox steps with Future-Focused Wealth: How to Build Financial Freedom at Your Own Pace. Her book introduces readers to the concept of money, then moves on to planning, building savings, and protecting wealth. A key principle is that money is a means of exchange and a resource to help you build a better life and achieve peace of mind. Retirement planning features prominently, together with taxation and estate planning. Various retirement funding methods are described, as well as types of insurance, from life to healthcare, funeral cover, asset protection, and business cover. Budgeting is explained in detail with a useful guideline that includes needs (50%), wants (30%), savings, and debt repayments (20%). It is also important to have an emergency fund. Managing debt and repaying it promptly can save money to be used for productive investments. The author advises readers to dream big and plan SMART (Specific, Measurable, Achievable, Relevant, and Time-bound). Various asset and investment classes are described to achieve a balanced portfolio. Draw up a will and communicate with your family as to what happens after your death and what legacy you wish to leave future generations.
Melissa Cox points out that financial planning is not just for the wealthy. A financial plan provides structure and is a personal and unique road map because we all have different needs and priorities. Future-Focused Wealth goes further than most financial guides, delving into spending and saving habits. The author questions the high cost of take-out foods, as well as convenience expenditures like grocery home deliveries, and other items such as entertainment that can be trimmed. The comments on raising children and the associated expenditure are particularly relevant and a little sobering if private schooling and a college education are in prospect. The role of our emotions in financial decision-making is also discussed. Planning provides an opportunity to evaluate our lifestyle and goals. Readers should be informed and take control, with regular reviews. There are no shortcuts. The author is a Certified Financial Planner (CFP) with over 20 years of experience. Her advice is that financial planning is not only about numbers, it is about mindset, and readers should cultivate a healthy one. This guide is concise, free of technical jargon, and well presented. An excellent glossary rounds off an exceptional publication.