When it comes to New Year resolutions one of the hardest to keep is reviewing finances. You promise yourself that this is the year you’ll review your pension/insurance policies/savings and get your financial planning on track.
Why is it important to review your financial plan?
If you want to be financially secure, both now and in the future, you need to review your financial plans to ensure they are fit for purpose. You need to know if you’re on track to achieve your goals. That way you’ll avoid any nasty surprises, like having to work longer than you would have liked or having to drastically cut your expenditure in retirement.
Where do you start?
Like any big task, it’s far easier if you break it down into manageable chunks. Below I have listed some of the practical steps you can take today:
- List your monthly expenditure – Break this down between ‘committed outgoings‘ (rent/mortgage, household bills, food shop, etc) and ‘discretionary outgoings‘ (holidays, entertainment, memberships). Feel free to use our template for expenditure and income
- List your monthly income – grab a recent payslip or bank statement and write down your monthly income after tax. You can use the expenditure and income template above.
- Write down the age you want to retire and the income you want to have – You already have your monthly expenditure, so just take off items that will stop in retirement (mortgage, savings,).
- Create your very own bucket list – These are the things you what to do and the places you want to visit. Put a cost next to them.
- Paperwork and files – Gather together all of your pension/savings/investment/insurance paperwork and policy documents.
- Debt – Dig out your mortgage/loans/finance paperwork so you have a list of your debts.
When you have completed the tasks above you are cooking on gas. You’ve reached a stage where you need some expert advice to help make sense of it all.
Making your plans a reality
To make sense of your options, you probably need some expert advice. If your aspirations are to become a future reality you need a clear financial plan. For example, if you’re saving for retirement, you need to know how much to save each month to reach your target. Which is the best savings vehicle to use and how to maximise the tax reliefs available.
You also need to know how best to protect your financial plan, to ensure you have long term financial security.
This is where speaking to a Financial Adviser that specialises in financial planning can really benefit you. It can help make your plans a reality.
We use our experience and technical knowledge to explain everything you need to know in simple terms. We then bring your financial plans to life by using cash flow modelling software to show you how your plans can become reality.
Book your free initial consultation
Make 2018 the year you get your financial planning on track. Book your free initial consultation by completing an enquiry form today.
THE VALUE OF PENSIONS AND INVESTMENTS CAN FALL AS WELL AS RISE AND YOU CAN GET BACK LESS THAN YOU INVESTED.
TAX TREATMENT VARIES ACCORDING TO INDIVIDUAL CIRCUMSTANCES AND IS SUBJECT TO CHANGE.