Let’s be honest, it’s not very often that we sit down and give great thought to our financial goals. So many people live month-to-month, affording very little time to think about where they are heading and where they want to be however, spending as little as half an hour to actually plan financial objectives can soon get you on track working towards your goals with very little effort.
Common financial goals often include;
Buying a house/car
Saving for a wedding/holiday/home improvements/university fees
Getting out of debt
Saving for a rainy day/emergency fund
Planning for retirement
Saving for a second home/holiday home
These are just a few ideas of the goals many people wish to achieve but struggle to get round to actually planning for and setting the wheels in motion, so;
Step 1 – Rather than being overwhelmed at how you’re going to achieve your goal, it’s easier if you breakdown the process into smaller steps. This will give you a greater sense of achievement along the way and hopefully keep you motivated.
Firstly, work out what is most important to you and your lifestyle. What do you value the most? The inner, social, physical and financial aspects of your life will most likely determine why and where you spend/save your money where you do. This process will lead to you getting organised and understanding where your money goes each month. Once you are aware of this, it’s easier to see where you could possibly cut back and make room for working at achieving that important life goal.
Step 2 – Give some consideration to the best way to achieve your goal. Depending on what you are planning/saving for, there will most likely be a most appropriate way of achieving your goal. For example, if you’re a young person and looking to save towards your retirement in 30 years time, putting money into a cash ISA each month wouldn’t necessarily be an awful idea but realistically to achieve the best result you would most likely benefit more so by paying into a certified pension scheme. These schemes offer the advantages of investing across a range of funds, are tailored to your attitude to risk as well as attracting tax relief at the appropriate rate. None of this needs to be daunting if you sit down with an Adviser and talk through how these things work and once you’re up and running you’ll wonder why you didn’t do it sooner.
Step 3 – Once you’re on the road towards achieving your goal, it’s important to review that your plan is still working. You wouldn’t spend all your time planting a beautiful garden to leave it to overgrow so the same applies here, nurture your hard work and you’ll see the results.
Often people know exactly what their financial goals are, others have no idea whatsoever but ‘want to do something’. Taking time out to get Financial Advice can be an hour well spent. Often, it’s only when people actually start talking to an Adviser they become aware that what they thought were their financial goals actually give way to something more important that they hadn’t given consideration to. This doesn’t mean that what you feel you want to achieve isn’t the right thing, it’s getting help and guidance to ensure that you get to where you want to be allowing for variable changes along the way.
There’s a lot more to the process than these 3 steps but working with your Financial Adviser can take the hard work out of achieving your goals. So whether you’re looking to set up a cash ISA, saving for your first home or you’ve a more complex situation that you’d like to talk through why not get in touch with us today and see where your financial journey will take you?