With so much uncertainty in the air, careful financial planning is crucial. It’s not always easy to predict the future, but there is a lot you can do to prepare for the unexpected. Having a plan safeguards your future and will make your life more comfortable. When doing this, it’s important to ask certain questions so you can achieve your goals.
What are your goals?
Whether you are planning for your retirement, helping with your children’s education, or simply creating a cushion so you can sleep at night. Whatever your goals are, it’s important to prioritise them. If you are saving for a home, you may decide on a five-year plan, and it’s important to set realistic targets so that you achieve your goals.
Have you created a budget?
The first place to start is to examine your monthly outgoings and expenditure. Organise those expenses into categories: those that could change (variable expenses) and those that stay fixed. Once you have done this, you can allocate a percentage of your budget and then decide what proportion you want to save for each goal. Try to factor in the months that may be more expensive. For example, Christmas may mean you don’t save, but if you are prepared, you will not be disappointed.
Have you got any debt?
A good way to add to your budget is to reduce your debts. Paying interest on multiple debts could be more expensive than consolidating them. Better still, pay off any debts that you can. Perhaps one of your financial goals is to pay off debts, in which case you can incorporate these into your financial plan.
Have you looked at all your options?
While high interest rates mean more costly loans and mortgages, the good news is that your savings will also earn a higher rate of interest. There are a multitude of accounts, ISAs, and investments you can choose from to maximise your funds. Choosing to invest in the stock exchange may be a riskier strategy than using FCA (Financial Conduct Authority) regulated savings accounts. Spreading the risk is best achieved by varying the types of investments you make.
Have you got the right insurance?
Having the right insurance is a sure way to prevent any unforeseen circumstances or events from wiping you out financially. Unfortunately, there are many sources of potential disaster. From storm damage to your home and motoring accidents to personal accidents and critical illness. Having good life insurance in place will protect your family if the worst should happen. That said, anything that affects your financial situation could adversely affect your loved ones. This is why it’s vital to make sure you have adequate insurance protection from cyber threats to your health. Otherwise, your future financial goals could be thwarted.
Have you sought advice?
It’s essential to seek the right advice when it comes to planning your financial future. From financial advisors and your insurance broker to your bank. You can insure against losses in almost every situation imaginable. So, a good plan is to spend some time with your broker, who will find the right policies that mitigate your individual risks.
Get an insurance quote that will safeguard your financial future.