The spread of financial success has certainly been wider this year than it has been for a long time. Some people made above average financial gains while others lost almost everything. The people who suffered the least were generally those in a better financial position or people who at least had an emergency pot in place.
Since the pandemic started, billionaires in America gained over a trillion dollars. Jeff Bezos increased his net worth by 61.4%, adding $70 billion to his books. Even more dramatic was Elon Musk, who increased his net worth by 413% or by more than $100 billion. The biggest losers were those already living hand to mouth, with 7 million more people in America now facing eviction from their homes.
For those of us at neither extreme, this year has highlighted the importance of financial planning. Undeniably, people who had emergency pots in place and investments will have been in a less stressful situation than those who did not. So, with Christmas around the corner, why not give a bit of financial security instead of an object that will be obsolete by this time next year?
Here are a few ideas for financial gifts that will actually be of future value:
1. Books that improve their understanding of money
This is probably the easiest one to do and there are plenty of options. Never underestimate the book as a gift, it may seem boring or unoriginal, but a book that adds value to their life will be appreciated forever. I can think of countless books that have enhanced my life and I always associate that acquired knowledge to the person who gave me the book. Personally, I am also far more likely to read a book to completion that was a gift.
A couple of recommendations from our team:
Rich Dad Poor Dad
The Richest Man in Babylon
Think and Grow Rich – Napoleon Hill
The Intelligent Advisor – Benjamin Graham
Unshakeable – Tony Robbins
Why The Rich Get Richer – Robert Kiyosaki
2. An investment or contribution to a saving account
People generally become interested in investing once they have skin in the game. If you try and talk about investing to someone who doesn’t invest, the conversation more often than not falls on deaf ears. Once you give someone skin in the game and they see an amount of money grow, they very quickly become interested and saving and investing becomes a higher priority in their life.
You could set them up with an investment platform, ISA or personal pension if you would like the money to be locked away.
For more guidance on this if it is something you would like to do, fell free to get in touch with us.
3. Insurance
The best time to take out an insurance policy is between 18-25. The premiums for this age group will be very low and can be locked in for the duration of the policy. The amount they will save over the course of their life will be huge if they maintain the policy and should they ever need the critical illness or disability cover to pay out, you will be the ultimate hero.
4. A collectable item
Find something that will appreciate or at least hold its value over time. This may require a little more research and thought but it is definitely worth it. This kind of present will always be more cherished than an electrical gadget and if they do find themselves between a rock and a hard place in the future, it could prove to be a lifeline.
5. Pay down their debt
Debt is a huge source of stress for everyone who has it. Being relieved of some of this stress would be a fantastic gift.
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