Worry less and achieve the financial future you want
Sadly, many people are terrified of money. As a result, they make decisions in a hurry which often turn out to be massive financial mistakes. However, sensible money management is simpler than you might think. Invest a little time nurturing your money, and the rewards could be substantial. Follow these steps to reduce financial fear, and you should feel calmer and in control of your future.
1. Think about your financial goals
What do you want to do with the rest of your life? Take some time to think about this. Start by imagining you’ve won the lottery. What would you do? Retire to the sun? Travel the world? Buy homes for your children? Of course, only a handful of people will actually win the lottery. But this is still a useful exercise because it makes you think about your priorities.
Moving on from lottery fantasies, it helps to think about your goals. It’s especially important that you think of your retirement goals. At what age are you hoping to stop work? Will you be happy to spend your days pottering in the garden? Or will you want to travel and have lots of new adventures?
2. How much will your goals cost?
This is probably the hardest step. OK, you can find out what a round-the-world trip will cost. Or the price of a property. But it’s not so easy to figure out how much money you’ll need to fund a comfortable retirement. Talking to a Financial Adviser will help. Find a local Financial Broker.
3. Get all your documents in one place
If you haven’t sat down and looked at your complete financial picture, you could be spending too much and saving too little. So you need to find all your financial documents and put them in one place. You’ll need at least some of these: recent payslips on income details, bank statements, any pensions, savings or investment details you may have, recent credit card bills, mortgage details and recent statements. Once you've got all these together, you should see your full financial picture.
4. What has to change?
So you know how much you’re worth, how much you’re making and you have some idea about what your financial goals will cost. Here’s the next question: will you be able to afford those goals? If the answer is no, ask yourself if you can make changes so that the goals become affordable.
5. Draw up a plan for your financial future
You’re almost done now! All you need do is draw up a plan for your financial future. This should include your goals, when you plan to achieve them, when you plan to retire. You will also need to know how much you’ll earn, spend, save each month and an outline of what you’ll do with your savings.
Once you’ve got a plan, try your very best to stick to it. A Financial Broker can help you every step of the way and can help keep you on track for the financial future you want. Only by regularly reviewing your financial situation will you be able to make your later-life goals a reality.