Your Personal Economy

Taking Back Control of your Personal Economy

Your Personal Economy – You can Plan it! You can Control it! You can Understand it!

Whether it is the risk of redundancy right through to the tightening or credit lines there is no doubt
times are tough at present with many of us now facing in to our own Personal Recession. So In the
backdrop of this global economic downturn where we have all been affected in one way or another,
how can you take back some element of control?

Many of the factors that are causing these problems are outside of our control and as such we can
have little or no influence on them. However, there are factors in our financial lives that are firmly in
our control and it is these factors that we must plan carefully to ensure that we not only survive the
economic downturn but that we are in a position to thrive when we come out of this period.

How do we do this? Well we can look to Ireland as an example.
Ireland is a small open economy and therefore, we, as a country have no control over decisions taken
by the large economies of the world yet they have a very real and dramatic affect on the economy
as a whole. We need only look to the recent US sub prime crisis and the knock on effects we have
experienced for evidence of this. So what does the Government do to try and protect themselves in this
environment?

Well, every year the Minister for Finance produces an Annual Budget for the Irish Economy. This sets
out the financial plans, goals and objectives for the year ahead using the tools available which include
everything from increased tax rates to reductions in capital expenditure. The purpose of this is to ensure
that the economy remains in a stable, balanced position while also implementing strategies that can
create wealth for the country in the future.

So, even though there are many factors at play in the Global economy that the Government can’t
control, there are also many factors that they can control and it their responsibility to coordinate
these factors in such a way that we make it through Global downturns and prosper in periods of Global
stability.

How can this be applied to you and your finances?

We know that the decisions made by Government have a massive impact on our lives and even though
you can’t control it, you need to understand them and take the necessary steps to manage your way
through any economic environment.

We believe it is up to every individual to learn how to plan and control their own Personal Economy to
ensure that they are running as efficiently as possible and to be in a position to plan for future wealth
creation in the same way as the Government of a small open economy plans and controls.

Prepare Your Own Personal Economy Budget

How many individuals can say that they prepare their own Personal Economy Budget and implement
necessary strategies using the tools available to them?

Based on our experience very few people think of themselves in this way but rather continue to plan
their finances on a haphazard basis as a need or problem arises. In doing this we believe that people
can never fully maximize their efficiency nor will they be in a position to take advantage of any possible
wealth creation opportunities that may present themselves.

It is vital now that people take this holistic approach to personal financial planning and the key to doing
this is to understand what the factors are that influence your Personal economy and more specifically
what factors you can control and what factors have an influence but are outside of your control.

What are the elements that make up your Personal Economy?

Many elements of the financial world are outside of your control, however, the elements that can be
controlled must be managed and developed to maximum efficiency through careful planning and advice
driven decision making. There are a number of key elements that make up any Personal Economy.

Each of these elements are so intrinsically linked that it is vital that you understand the effect
of decisions made in one area can have on the next. We believe that you cannot separate each
of these elements when planning your finances but rather you must plan them as one entity –
your Personal Economy.

Cash Flow Management
Tax Planning
Financing and mortgaging
Investment Planning
Wealth creation and planning
Retirement Planning

The management of a Personal Economy will be different for every individual and will depend on a wide
range of factors specific to you. This is where the need for a competent qualified financial adviser comes
into play. We believe that through our holistic approach to tax and financial planning we can help you to
deliver a strategy that can put you back in control of your finances.

We have seen the implications of poor economic strategy and the ripple effect that this has caused
throughout the Global and Local economies and the knock on affects that this has caused on your
financial lives. This is a lesson that we can all learn from. It is vital that you take back control of your own
personal finances and implement strategies that protect you in bad times and maximize opportunities in
good times.

You need to start to think of yourself as a small open economy and use the tools at your disposal
to protect yourself and maximize your efficiency. It’s your Personal Economy, Plan it, Control it,
Understand it!

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By Johnny McNamara – McNamara & Associates

Call us today and arrange an appointment 01 230 9000