Are you living this year as you envisioned it to be? Christopher Hewson, a Chartered Financial Planner at Medical & Dental, a specialist division of Acumen Financial Planning, shares some helpful hints on how to stay on track to achieve your goals.
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As glimmers of spring start to appear as we head onwards into 2023, it’s often useful to pause for breath and ensure you have started the year how you intended. Those grand plans dreamt up at the end of 2022 and into 2023, how are they still shaping up? Do they continue to energise you, or have you fallen into your old habits?
The importance of having a plan
Making a plan is important because it:
- Provides clarity and direction for decision making
- Helps prioritise goals and allocate resources effectively
- Increases accountability and motivation to achieve the goals
- Helps manage and mitigate risks
- Facilitates measurement of progress and success
- Promotes a sense of control and reduces stress
- Improves long-term outcomes and increases the chances of success
How financial planning helps you
For your finances this should be no different. Financial planning is important for any individual and family, as it helps to create a budget and plan for the future. Financial planning helps to ensure that you have the resources to support your goals and objectives and enables you to make sound decisions about investments and financing. It also helps to identify risks and opportunities, so that you can make informed decisions about how to use resources. Financial planning can help reduce the risk of financial hardship, and also help to create a roadmap for future success. There will be speed bumps and diversions along the way, however, if you know the destination, you can adapt along the way.
Money versus what you care about
Whilst the actual finances clearly form part of how we help individuals, families and business owners, some of the most important conversations we have are not about money – at least, not exactly. Of course, clearly a lot of our discussions consider money and finances, with a focus on “how?” “How am I going to pay for university for my kids?” “How am I going to be able to retire comfortably?” “How am I going to keep from paying too much in taxes?”
However, it can be more insightful for both parties to ask “why?” “Why is retirement important to you?” “Why is a university education for your children important?” “Why is this particular cause/organisation/charity important to you, and how would you like to help?”
A phrase I use often when talking with clients is, “Money can’t buy happiness, but it can give you choices.” The fact is that money, though it is necessary for most of the things we care about in life, isn’t what most people care about. They care about security, helping those they love, and having meaningful experiences. None of those are monetary, strictly speaking, but money is certainly involved.
Tips to stick with your financial plan
Here are some tips to help you stick with your financial plan:
- Write it down, make it specific and measurable; refer to it regularly. Consider your “why”.
- Start small and make incremental changes.
- Create a plan of action with steps and deadlines.
- Track your spending regularly.
- Automate savings and bill payments.
- Avoid impulse purchases. (Try to sleep on any impulse purchases).
- Review the plan regularly.
- Surround yourself with a supportive network.
- Hold yourself accountable by monitoring progress.
- Celebrate milestones and forgive setbacks. Celebrate progress and stay positive.
- Be flexible and adapt to changes as needed.
- Don’t give up, focus on progress over perfection.
Investing and financial planning is a game of patience. You wouldn’t plant a tree, then dig it up every day to see how it’s doing. Give it time, allow your investment to grow.
Ultimately, success in 2023 will require strategic planning and careful execution.
Start with the end in mind and plan your way back to the present. If you know what you want to achieve, how can you put in place a plan to achieve it? Money will be a factor, but there’s so much more to conside. Make a plan that inspires you and stick to it.
Start your financial planning journey with Medical & Dental or call 01224 648811.