Cashing in your future
I was reading the latest trend of people cashing in their pensions when they have been retrenched.
This reminded me about some stories that I have been hearing: People appear to be going as far as resigning simply to access their funds. The reason simply to get out of debt!
The sad truth about this is that folk are feeling the pressure and are reacting to it. Worse still though is that they have not been on any course to change their current spending behaviour.
We are hearing that 2015 will see the introduction of a social welfare type grant, but this is certainly not confirmed.
What we will know is that this grant is not going to be “enough”, simply because people have not answered for themselves “what is enough”.
This then is the root cause of the issue. People will always live to their means, this translates into people doing foolish things. Instead of cutting things out of their lives they dig into their future.
Without changing your spending pattern you will never truly get yourself out of debt. This will “force” you to make decisions like tapping your pension.
Rather make the correct purchasing decisions now. If you can really afford it then buy it, if not then don’t