New Year – Financial Goals

This blog was written by Ashley Hull, Financial Adviser.

New Year is always a time for new resolutions from all areas of life. This blog provides a list of seven financial goals that should come in handy.

  1. Review your existing Protection Plans

  • These cover you should the unexpected happen, and unsurprisingly these events happen when you least expect them.
  • Having protection in place, means your family will be provided for should anything happen to you.
  1. Pay off bad debt

  • Whether this may be credit cards or loans, often due to the interest rate, paying the minimum means it will take a long time to pay off the full amount.
  • The quicker this is paid off, the quicker your disposable income increases
  1. Pay yourself first – Save your money before you spend your money

  • Have a savings account you do not look at regularly and once you are paid transfer the savings money into this account.
  • This will start a really good habit which will prevent you overspending and will help you provide for your future self.
  • This money could also be used to fund Pensions and Investments.
  1. Budget – and Do It Properly

  • Review your expenditure over the previous 12 months and break your expenditure down into sub-categories (Household Bills, Insurances, Food & Drink, Going Out, Activities and Holidays)
  • This will also be a good time to reflect on what you spend and whether you think it is worthwhile.
  • The reason for doing this properly is it is very easy to underestimate your expenditure and this may open your eyes to think about what it is you need going forward.
  1. Review your Financial Plan and if you do not have a Financial Plan – create one

  • If the below questions are relevant to you, speak with an Independent Financial Adviser
  • When can I retire?
  • I want to spend more in retirement – can I do this?
  • What does my pension look like?
  • Can I afford to help my children purchase their first property?
  • Do I have enough life cover?
  • If something happened to me, what would happen to my estate? Would there be Inheritance Tax to pay?
  1. Make a Will and Lasting Power of Attorney (LPA)

  • A Will ensures your estate goes to who you want it to go to.
  • Having an LPA in place means people can act on your behalf when you are unable, it prevents any need for court intervention and can ensure you are protected when you may need it the most.
  1. Write Down Your List of Goals

  • Goals without action are just dreams.
  • Whatever your goals are – write them down.
  • You are 42% more likely to achieve your goals by writing them down and it gives you something to be accountable towards.
  • By reviewing them regularly you will be able to check if you are on track.

So now you have seven financial goals to help with your financial planning. If you would like to discuss your financial goals further or another financial planning matter please get in touch with Ashley Hull, or via mobile: 07741 242151.