BBC Learnings · Section 10

Money and lifestyle

In this programme we're talking about finance and in particular planning for our future lifestyles.

Level: B1 · 138 sentences

Transcript

In this programme we're talking about finance
and in particular planning for our future lifestyles.
I can barely afford my current lifestyle!
Same here. But perhaps we'll pick up some good tips today.
Before that though, a question.
Being a millionaire may be an impossible dream for most of us.
But when was the word first used in English?
Was it a the 1600s, b the 1700s or c the 1800s?
What do you think, Rob?
I'm going to guess that it's the 1600s
as there have always been very wealthy people.
Well, I'll reveal the answer later.
Now, the BBC Moneybox programme covers all sorts of financial features.
Recently they were talking about lifestyle financial planning,
which is planning your finances to meet the kind
of lifestyle you want to have.
Julie Lord leads a financial planning organisation
and she talked about the process of lifestyle financial planning.
How many numbers does she say you need to start with?
Well, we would start by saying that we need to put
together a lifetime cash flow forecast or a model.
You just need four numbers, your income, your expenditure, assets,
liabilities and then we can project
forward to show you what sort
of lifestyle you will have if you do nothing at all
and if indeed you do some of the things
that perhaps an ISA or a pension
or any other kind of financial product might help you with.
So, how many numbers do you need?
She says that you start with just four numbers.
That's right. The first of these numbers is your income.
This is the money that you have coming in –
your salary, for example.
Then there's the number for your expenditure.
This is the money you have going out –
for rent, food, entertainment, transport and so on.
The next number was for assets.
This is the cash value of things
that you own, for example property,
cars, jewellery, as well as savings
and investments – that kind of thing.
And finally there is liabilities.
This is the money that you owe,
for example on credit cards or loans.
So if you know these details,
she says they can come up
with a lifetime cash flow forecast,
which is a calculation of how much money
you can expect to have in the future
and if that is enough to meet your expectations.
Do you have those details?
Do you know your numbers, Rob?
I have a very detailed spreadsheet
where I do list my income and expenditure.
So I do know from month
to month how much money I need
and how much I can spend.
That sounds very organised.
What does it tell you about your future?
Well, it just reminds me of exactly
how much money I don't have. It's quite depressing.
How about you, Neil?
Oh, I live in blissful ignorance.
I have no idea how big my debts are.
I try not to worry about it.
I kind of think I'm much too young to worry
about it now and that, as if by magic,
it will all work out in the end.
So it would be difficult for me
to come up with those four numbers.
Anyway, let's listen to Julie Lord again
describing the lifestyle financial planning process.
Well, we would start by saying that we need to put
together a lifetime cash flow forecast or a model.
You just need four numbers – your income, your expenditure, assets,
liabilities – and then we can project
forward to show you what sort
of lifestyle you will have if you do nothing at all
and if indeed you do some of the things
that perhaps an ISA or a pension
or any other kind of financial product might help you with.
Is lifestyle financial planning only for older people with a good pension?
Not according to Julie Lord.
Well, it's not all about old age, is it?
I mean, there are people, we have quite a number
of younger clients who come to us
and say we just want to get financially organised.
We've heard about all this stuff, these financial products.
No idea really what they are or more importantly
what they're going to do for us.
So can you give us a hand to help us look
forward to see what will happen?
So she also has younger clients
who ask for her company's help.
Yes, she uses the phrase, give us
a hand, which means to help someone.
If you give someone a hand, you help them.
Exactly, in the way that I give you
a hand with 6 Minute English.
Well, I think I give you a hand rather
than the other way around, Neil.
Really? Well, let's not fall out about it.
Let's listen to Julie Lord again.
Well it's not all about old age is it?
I mean there are people, we have quite a number
of younger clients who come to us
and say we just want to get financially organised.
We've heard about all this stuff, these financial products,
no idea really what they are or more importantly
what they're going to do for us.
So can you give us a hand to look,
to help us look forward to see what will happen?
It's nearly time now to review
our vocabulary but first let's have the answer to our quiz question.
When was the word millionaire first used in English?
Was it a the 1600s, b the 1700s or c the 1800s?
What did you think, Rob?
Well, I guessed and said it was the 1600s.
Well, not a good guess this time, I'm afraid.
It's actually a lot later.
It was the 1800s when it was first used in English,
though it had appeared in French in the 1700s.
Now on to the vocabulary.
Yes, we had a lot of financial terms in this programme.
We had cash flow forecast.
This is a calculation of how much money you can expect
to have at a particular time in the future.
And the cash flow forecast is based on knowing your income,
which is the money you have coming in, and your expenditure,
the money you have going out.
You also need to know your assets,
which is the value of things you
own as well as savings and investments.
This is balanced against your liabilities,
which is the term for the money that you
owe, for example on credit cards.
And finally we have the expression
to give someone a hand, meaning to help someone.