No question, 2022 was financially challenging for many – inflation at levels not seen since the 80s, impacts from the Russian invasion of Ukraine, and Liz Truss’s controversial tax break agenda (and its subsequent reversal).
This is a great time of year to review, reset and reboot our habits for health, productivity and for getting our finances in order.
Your financial situation can really affect your overall wellbeing. How you think and feel about your finances makes a real difference.
With this is in mind we’re sharing our FIVE FINANCIAL STEPS FOR 2023:
#1 KNOW YOUR GOALS
Whilst our priorities can, and do, change, knowing where you’re headed is a powerful starting point. Putting a plan in place is the next step to understanding how much money you need to achieve them and how to invest your money in a way which suits you, with the level of risk you need and are comfortable with. A financial planner can ensure that your plan is based on sound decisions and geared up to get you to where you want to be.
#2 GET ADVICE TO AVOID EMOTIONALLY-DRIVEN DECISIONS
Volatility in the markets is nothing new but that doesn’t make it any easier to handle. 2022 was a nasty reminder of how unpredictable markets can be. Research shows us that we make emotionally fuelled decisions when markets crash. Taking your money out of the markets at a low point and then missing the upside can be detrimental to your long-term portfolio performance. Your financial planner should be able to help you weather the ups and downs and avoid the knee-jerk decisions.
#3 TAKE CONTROL OF YOUR DAILY FINANCES
Having money invested for your future wellbeing ticks every box. But what about the here and now? Do you know how much money you spend day to day and are you able to access funds should something change suddenly? There’s comfort in knowing you’re financially secure in the here and now as well as preparing for retirement. This is great for your wellbeing and lets you focus on doing the things you want to.
#4 TAPPING INTO SOUND DATA
Do you know what your options are? For investing? For holding the cash you need? What different portfolios are available? How much do they cost? Are you using all the tax allowances available to you? A barrage of questions, but a good financial planner will be able to answer them and help you make your money work harder in line with your overall goals – whether that’s paying off your mortgage, gifting to the kids or retiring earlier. They should be proactively helping you get into the strongest position as your life and finances change over time. Sometimes there are compromises to be made but having good clear information will help you make the right decisions.
#5 THINK ABOUT YOUR LEGACY
Peace of mind is top of most of our clients’ wish lists. But for many, looking after your loved ones is just as important. Leaving them financially secure and with the guidance of someone who knows your financial situation and intentions can provide stability if anything happened to you. Working with a financial planner who not only understands your financial situation and goals, but also understands your family, will help ease your mind about the future.
THE BOTTOM LINE
Falling short in one of these areas can be stressful for you and your family. Unfortunately, it’s not always easy to see where the gaps are in your own financial situation and sometimes realisation comes too late. Being objective can be challenging when it comes to some of the most important decisions.
Set a financial wellbeing focus that works for you and put a Financial Plan in place that helps you deliver this and, ultimately, makes life count.
THE NEXT STEP IS SIMPLE
As ever, we’d love to help you. Simply get in touch with your usual contact or book a free, no obligation chat by clicking here.
Past performance can’t guarantee what investments will do in the future. The value of a portfolio can go down as well as up, so there’s a chance you’d get back less than you put in.
Tax and estate planning advice are not regulated by the FCA.
This communication is for general information only and is not intended to be individual advice. You are recommended to seek competent professional advice before taking any action.
