Your Guide To A Wealthy Future

If you take control of your money today, you can do it in a way that shields you from the economic problems that David Kuo predicts will threaten your wealth and happiness in the future.

This article first appeared in our 2012 email series. If you've been a regular reader of our emails over the past few weeks, you'll know that we have been on a mission to try to help you get your finances in shape for 2012. Our head of finance, Dr David Kuo, has made five big economic predictions about what will happen to house prices, pensions, wages, the availability of credit and the size of household budgets between now and 2012 - and we've been writing lots of articles about the potential impact of these predictions on your finances. But I'm concerned you may have been reading all this and thinking: "2012? Thanks for the heads up, but that's a long way off... Why should I worry about that now?" And the answer is: worry about it now, so you don't have anything to worry about later. If you take control of your money today, you can do it in a way that shields you from the economic problems that David predicts will threaten your wealth and happiness in the future. Pay Attention! OK, so, for those of you who weren't paying attention (or simply want a quick re-cap), here's a summary of David's predictions, along with links to the articles that explain the best strategies you can use to protect your finances, should the worst of what he predicts come true. Prediction 1: Property prices will fall by 20% this year, and the average property will cost £13,000 less in 2012. Whether you're a homeowner or a first-time buyer, if this controversial prediction is right, it will have a huge impact on your finances over the next few years. You can find out more about why David thinks this will happen by downloading our free online report (and you can also give your own predictions and feedback on our Property Markets and Trends discussion board). Of course, we'll have to wait until 2012 to find out whether David was on the money or not. But in the meantime, is there anything you can do today to protect yourself from any falls in house prices - or to take advantage of them? First-time buyers: If you're planning to buy a home in 2008, follow Alison Hunt's five top tips on how to get value for money and Neil Faulkner's advice on how to save for a deposit. If you believe David's prediction, this year is a risky time to invest, so it's vital you make the most of property price plunges and avoid this property peril. Existing Homeowners: To help ward off the effects of a property market crash, read Serena Cowdy's article on The Best Ways To Add Value to your home and take Cliff D'Arcy's advice on how to minimise any risk that you will fall into negative equity. And if you're looking to sell your home in a today's tough market conditions, take a look at these articles on what buyers want and how to get the best price for your property. Prediction 2: Seven out of 10 credit cards will be rejected in 2012. As Egg customers found out last week, credit card providers are not the kind, generous companies they once were, before the credit crunch. That's why David predicts that people who would previously have had no problems getting any credit may run into trouble in the future, as more and more banks secretly keep tabs on you and share information about your creditworthiness behind your back. If you have been turned down by credit card company and don't know why, this article might help to clear matters up. And here, Jane Baker explains lists seven ways to help ensure you won't get turned down for credit in the future. It is also worth taking a long-term view of your borrowing, particularly if you have a mortgage, by opting for a lifetime tracker or a long-term fixed rate. Don't panic if you're heavily in debt on your credit card. In her article Free Yourself From Credit Card Debt, Serena Cowdy highlights six easy ways to help you whittle down the amount you owe, so you're not longer so dependent on your plastic. Prediction 3: Wages are set to increase by 3% every year until 2012 While David predicts house prices will fall, he also predicts wages will rise steadily - meaning certain groups, such as first-time buyers, should be better off in 2012. But here at The Fool, we want to help you become wealthier today... not in five years' time. That's why Szu Ping Chang and others have been writing about how to boost your income right now by, for example: Giving yourself a 6700% pay rise in seconds Learning how to invest successfully Looking at alternative ways to increase your incomingsPrediction 4: People retiring in 2012 will be worse off Nearly two million pensioners are living in poverty - and according to David, this is only set to get worse in the next four years, as inflation increases and the individual buying power of pensioners weakens. That's why it's vital you take steps today to protect your pension from the effects of inflation and invest it wisely in different asset classes. If you're already a pensioner, or are approaching retirement, make sure you understand how to buy the right annuity and don't forget to claim your share of the £4.6 billion of benefits the Government has put aside for you (as this article explains, many benefits are age-related, rather than means-tested). Prediction 5: The rising costs of living means that, by 2012, the average family will face a £8,000 shortfall in their annual budget. The easiest way to ensure your family aren't caught out by this prediction is to start saving now. Read Alison Hunt's article on the top ten savings accounts and Neil Faulkner's tips on How To Spend Less And Have More. And if you really want to make the most of your money, Jane Baker's article on the top five current accounts is well worth a look. There are also many ways The Fool can help you to cut costs. For example, did you know you could potentially: Save £2,816 by 2012 if you switch energy suppliers today. Save £2,053 by Christmas 2008 by remortgaging to a better deal.Furnish your home for £1,000Look (even more) drop-dead gorgeous for £23.33Find an extra £100 a month or more ...and that's just the start! Check out our bi-weekly round-up of the best discounts and deals for more money-saving tips. Of course, you may not agree with David's predictions -I, for one, hope that many of them will not actually come true. But, as the Scouts among you will know, it's always best to be prepared. Especially when your future wealth and happiness is at stake. Read David's predictions in full by downloading our free online report.