Most of us take note of our big purchases but what about all the little things?
We can be forgiven for allowing ourselves a treat now and again – the occasional Starbucks coffee probably does us more good than harm.
But when treats become daily occurrences bank balances start to suffer. Without realising it, a 2 cuppa could spiral into a 450-plus annual bill.
If financial advisers talk to their clients about how and where they spend small amounts of cash regularly, they can show them how much they are frittering away.
Clients can be shown how cutting back on small purchases could put them in a position to afford important financial outgoings such as making their mortgage repayments more quickly or protecting themselves against life’s risks.
A non-smoking 35 year old female could afford 100,000 worth of life cover for around 7.69 a month just by cutting out her daily coffee habit, and pocket hundreds each year.
Whatever your clients’ little luxuries are – coffee, chocolate, a pre-packed sandwich or the obligatory Friday night drinks after work – they all add up.
Advisers can help clients cut back on non-essentials so they can find enough money to spend on protection, which is a necessity.