Having a financial plan in place can ensure that you enjoy life today, while feeling confident about tomorrow. It can support you in planning for all of life’s changes instead of reacting to them when it comes to it.
With so many different milestones in life, it is important you have enough money in place to enjoy them.
Life’s milestones and money
Milestones can come along in your life that mean you may need extra funds to be able to make the most of those moments without financial stress. Whether it’s buying your first home, planning a wedding, starting a family preparing for retirement, early retirement leisure, each stage brings unique financial challenges and opportunities.
Ask yourself the questions:
-When do I want to retire?
-How much do I need to maintain my lifestyle?
-What do I need to save for both short-term goals and long-term security?
At PM+M we offer cash flow modelling, so you can figure out exactly where your money is going and how to make it work for you. This gives you a clear picture of your current financial position and helps you forecast future income and expenses.
Benefits of planning ahead
Planning ahead for the future can have many benefits. It means that you are prepared for any expected changes and therefore can ensure you have the correct plans:
-Peace of mind and confidence – Having a plan gives you the peace of mind that money is where it needs to be and working well.
-Better decision making – With a good plan in place you can test different scenarios and make decisions about savings, investing or spending.
-Improved financial health – A plan encourages discipline and control, helping ensure you have the right funds in place for each stage of life and reducing the risk of financial instability.
-Protection for loved ones – Preparing for the future benefits not only you but also your loved ones. Putting a plan in place through protection and estate planning ensures that your hard-earned money is getting passed to the right people. Our cashflow plan can tell you how much you might need in the event of the unknown.
Avoiding the common pitfalls
Having a financial plan in place for every stage of your life is a huge step, but you need to consider some of the potential pitfalls that could hinder your success.
-Not having an emergency fund in place
Having an emergency fund is crucial to prepare you for any unexpected events / changes that may happen within your life.
-Overspending instead of saving
Overspending can lead to lead to financial stress and threaten your future goals. Saving and staying on track can help you get where you want to be.
-Failing to begin retirement savings early
Although for many, retirement may seem a long time off, the younger you start building your pension pot the sooner you may be able to enjoy the retirement you have dreamed of!
-Overlooking tax planning
Tax planning is a crucial part of every financial plan. Preparing for tax at each stage of your life can ensure you maximise your savings not only for yourself but also your friends and family.
-Not reviewing your plan regularly
It is important that you meet regularly with your financial adviser to review your plan and ensure everything is on track and your money is working for you. A cashflow forecast is a living & breathing plan.
How you can get started
At PM+M, our team of trusted financial advisers can help navigate you through the process of getting your finances in order throughout each stage of your life. Their tools, knowledge and objectivity will make the process much easier and simpler to understand – giving you peace of mind that your journey will be a successful one for helping you achieve more from your finances.
Contact our financial planning team today by emailing financialplanning@pmm.co.uk or calling 01254 679131.
The information contained within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction.
