Finance

FINANCIAL WELLBEING

Andrew Fort B.A. (Econ.) CFPcm Chartered MCSI APFS, Certified and Chartered Financial Planner, Fort Financial Planning

Financial wellbeing means having financial security and financial freedom of choice, both now and in the future. Many things are tightly wrapped into financial decisions – beliefs and values, emotions and experience, so, what steps can you take to establish financial wellbeing?

Set life and financial goals based on what matters to you and where you want be. Are these goals within reach? If not, what needs to happen to bring them closer?

Save for the future, by having ‘savings goals’. And what about retirement? What will that look like? And how will you fill your days when you no longer have to go to work?

How much will your desired lifestyle cost?

Plan your budget and spend less than you earn. Comparing costs of insurances might require a bit of research but the savings can be significant. Also, try to reduce non-essential expenditure. When shopping, ask yourself: •Do I need it? •Can I afford it? •Will I use it? •Is it worth it? •Do I have one already?

Consider how well protected you and

your family are. Life is full of ups and downs, so, being prepared for the unknown allows for peace of mind, and the ability to navigate yourself and your family through a financial crisis (death, illness, redundancy or an accident).

Plan for the worst. Death is an uncomfortable subject but it must be broached. When did you last review your will? Is it still valid? Will your assets go to the right people? Do you have a lasting power of attorney?

Consider sitting down with a financial

wellbeing planner. By working together, they can assist you in maximising your money’s potential. Be financially well-organised. It’s not easy but if you partner with a real financial planner, they can help guide you in the right direction.

In essence, financial wellbeing allows you to concentrate on enjoying life without worrying about many of the ‘what ifs’.

It pleases me to know that the clients of my firm worry less about money and their future than they used to. Much of my own happiness derives from knowing that while I’m alive my wife and I are able to do the things we enjoy and spend quality time with our family, while at the same time knowing that when our time is up the people that we want to benefit will benefit.

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WEALTH MANAGEMENT FOR WOMEN

DESIGNING YOUR OWN LIFESTYLE PLAN

Sarah Roughsedge, Founder, Eva Wealth Management for Women

In the month where we celebrate International Women’s Day, it seems only appropriate to give some focus to further empower women to take control of their finances and make sound life and finance decisions.

The traditional model of the man of the household running the finances is becoming an outmoded concept as more and more women take control of their financial future. Breaking down the jargon of financial terms and providing advice in a way that, despite its complexities, is easy to understand and process, is vital. And so, this article, whilst applicable for everyone, I hope will be of particular interest to women who are seeking to further their personal financial planning.

Although January already seems far behind us, it is perhaps not so far to recall some of the aspirations, we may have had at the start of a new calendar year. This year in particular, after the financial and emotional devastation caused by the pandemic, many of us are reflecting on the way we live our lives and what positive changes we can make going forward. Ultimately, it’s important to remember that we are in charge of our own destiny, whether we’re fresh out of education, or much further along in the journey of life.

The pandemic has of course affected us all in markedly different ways and will continue to affect our finances for years to come. What is essential is that we don’t let fear get in the way just because we’re not sure exactly what these changes will bring. We may be comfortable with our lives currently but let’s not be complacent.

Creating your own lifestyle financial plan starts by taking into account your financial needs and wants, from wealth creation, to investing, to protection. For most of us, it’s our financial ambitions that are likely to be the biggest, most life-changing goals of all. But, due to the hectic lives we live, they can all too often be put on the back burner. Identifying and setting our short-term, mid-term and long-term financial goals are important parts of the process towards becoming financially secure and being able to carve out our desired lifestyle, or think about how to make the most of our accumulated wealth for ourselves and our families beyond, instead of simply being caught on the treadmill, or assumptions of life.

If you’re not working towards something specific, it is all too easy to spend more than you should and then come up short when money is required for unexpected

6. Review and revise your plan as your life changes over time

1. Gather your personal financial data

5. Take action by implementing your financial lifestyle plan

2. Identify your unique goals and vision for the future

4. Create a financial lifestyle plan and consider any alternatives 3. Evaluate your current financial situation

bills, not to mention when you want to retire, or give gifts to loved ones, without detrimentally impacting on your own lifestyle now.

Whatever stage of life you’re at, having a clear financial plan in place will ensure you can take advantage of the opportunities as they present themselves and prepare for any challenges that you, your family or business may face. Once you understand your dreams, ambitions and needs, you can take action to make sure these become a reality. Life doesn’t stand still, so your financial plans shouldn’t either.

Consider the questions you may need to ask to shape your future and the actions required to make it happen. As we all know and have probably experienced, there will be bumps along the road to prepare for. 1 Understand your current financial position as a starting point. 2 Allow yourself to explore what you actually want from life. Try asking yourself the following questions: •Can I sleep comfortably knowing I’ll have enough money for my future? •Am I ready for life beyond work? •What is ‘my number’ to ensure my current and

future lifestyle? •What will my children’s future hold? •How can I pass on my wealth to the next generation? •Is now the right time to sell my business? 3 How important is each of your goals? 4 Do you need to consider protecting them? If so, how? 5 Put an appropriate investment strategy in place •Build a diversified portfolio •Understand the level of investment risk you need to take •Ensure the time frame of the investment is suitable •Consider your opinions around responsible investing and how important this is to you. 6 Test and review your lifestyle plan to ensure that your various components (protection, investments, legacy, savings plans) remain relevant and applicable to your goals.

Setting financial goals for your lifestyle plan is critical but discovering how to create that plan takes you beyond goal-setting. It adds an emotional element to those goals, infusing all that you do with meaning. With lifestyle planning, you get to the core of who you are, what you want and how to accomplish it.