FOOL'S EYE VIEW
Look To The Future Now - It's Only Just Begun

By Jane Mack (TMFJane)
December 28, 2001

I was watching an immensely jovial Noddy Holder on the telly the other day and started pondering - as you do when you're a bit too full of mince pies and mulled wine.

Depending on your age, Noddy will be a household name for any number of reasons. Perhaps because of the endless run of nostalgia programmes about the music of the Seventies. Or the infamous Reeves and Mortimer parody. Or because of 'The Grimleys' TV series?

Whatever the reason, and regardless of age, I'm 99.9% certain that everyone will be familiar with Noddy Holder's most famous legacy to the nation. It's that song – the one without which no festive compilation CD would be complete.

I was watching him introduce the Top Ten best-known Christmas songs when he got down to number 3 and announced: "To you, it's a Christmas Classic – to me, it's a Pension Plan".

As the ancient Top of the Pops clip of Slade singing 'Merry Xmas, Everybody' hove into view on my TV screen, I thought: no wonder he's always so cheerful. That song has been surfacing every Christmas for nigh on a quarter of a century now and when you think of the annual royalties, you've got to admit, it certainly is one hell of a Pension Plan!

However, just as I'd be willing to bet he and his band weren't thinking of their old age when they wrote it, I'd also be willing to bet that not many of us will pen a classic Christmas song that will provide us with our own instant pension plan.

Are we spending too much?

I know this is a roundabout way of suggesting that we all need to think about our financial futures but I've been pondering on other things fiscal too. To be honest, I'm a bit puzzled about all the money we seem to be spending these days.

Retailers have been reporting that consumer spending is at a record high and it appears to be continuing with the post-Christmas sales. This is in spite of analysts' predictions of an economic downturn and the concerns expressed by consumer organisations that household debt is greater than ever.

I know that low interest rates and low inflation are making the consumer feel more confident about the economy but I do find it strange that so many of us seem to be imbued with the feel-good factor of retail therapy when redundancies are on the increase and there is supposedly trouble ahead.

In fact, I was even speculating about whether I was being a little extravagant myself when I questioned last week whether a visit to a top class restaurant could really be considered 'value for money'. The fact that something's affordable now doesn't mean it will be in six month's time.

A New Year's Resolution

The encouraging thing is that, in spite of greater personal debt and increased consumer spending, people are apparently thinking about their financial futures a little more these days.

According to a new survey carried out by American Express Bank, sorting out our finances is the 'in thing' to put at the top of our New Year's Resolution list. You'll not be surprised to learn that usually we vow to go on a diet. But this year only 29% of those surveyed plan to do so, while 34% intend to work on getting their finances in better shape.

I suppose the reason I'm puzzled is that these research results don't seem to tally with our increasing willingness to open our wallets. I'm sure I'm not the only one wondering if there's a element of the 'Life's too short' mentality creeping in after the events of September 11th. Maybe we do have more disposable income these days but perhaps we are being just a little too complacent about our spending.

I can't figure it out really - but having tried both types of New Year Resolutions in the past, I can tell you that sorting out the finances is easier! It makes you feel just as good as being able to do the button up on your favourite pair of trousers and if the predictions about a full-blown recession do come to pass, at least you'll be prepared for it.

Either way, if you're someone who would rather sort out your finances than go on a diet in 2002 then you can start by reading through the 'Learn and Find' section on the Fool's School main page of The Motley Fool website. We may not be able to do what Noddy Holder did but we can still formulate a plan of action to ensure our own financial futures are secure.

If you're old enough to remember it, you'll recall that Slade had a Top Twenty hit in the Seventies with a song called 'Nobody's Fool'. It's a good title, isn't it? Perhaps 2002 is your year for making sure you're nobody's fool when it comes to money.

More: The Motley Fool's Guide To Pensions