The Money Machine

1997: Breakdown - Jonathan Mostow

Financial planners are sometimes confused with magicians - in truth there is nothing magical about financial planning, though some people certainly approach money as though it was. The principles of sound financial management boil down to generating income and keeping costs below income levels. Long-term planning is essentially ensuring that there is sufficient income to meet costs without having to "work". Most of us have resources that enable us to find work and earn a living, however when times are more challenging, as they are now, thoughts are often directed to the money machine.

If you were hoping that I was going to point you in the direction of the nearest money machine, I'm afraid that there is no such thing. You are "it". Your own personal skill set and capacity to think will require your creative endeavours to "go forth and earn". Some people are not able to do this, because they lack the ability to see their resources, understand them and in some instances may have no resources at all. Those wishing to see their resources need to reflect on how to best employ them. This is not a straight-forward problem, but one that starts with the end in mind. How much is needed and over what time (which is a diminishing resource for us all). Many financial advisers seem unable to do this for themselves and so I would question their ability to do so for their clients. I believe that this is because the thinking required goes beyond the simple needs of today and must be based upon a larger picture, one that is built upon personal values. This is where expert financial planning reaps benefits.

Of course if you are the money machine (you physically go out to earn a living) then it would make a lot of sense, unless you have ample resources, to insure yourself against breakdown - you would do so for your car and house and probably a pet, yet a significant number of people do not properly insure themselves - their ability to earn. This is one of the very first steps of any good financial plan. Sadly once the machine breaks down, there is no chance of taking out insurance. So make sure that you have the proper level of cover. Hopefully your cash machine won't ever break down, but if it does, you will have ensured that your finances and lifestyle do not become casualties. Its bad enough when the mundane things break, as my boiler did the other week - but when the thing that breaks is you, the size of the problem is significantly more problematic than a lack of hot water.