22nd December 2023
Journey to monetary autonomy
OPTIMISING YOUR FINANCES AND FORMULATING AN ALL-ENCOMPASSING WEALTH PLAN FOR THE FUTURE
Everyone is entitled to monetary autonomy, and maintaining financial wellness throughout life is more of a marathon than a sprint. One must deeply grasp one’s financial status to reach short-term and long-term objectives.
To optimize your finances and formulate an all-encompassing wealth plan for the future, we have created a guide that will enable you to understand your finances better and boost your financial fitness.
UNDERSTANDING YOUR FINANCIAL STATUS
The first step towards improving your financial fitness involves understanding your financial situation. Begin by documenting your income and expenditure or updating any existing records. Ask yourself if your income meets your expenses. Do you have surplus income that can be invested? Are there underutilized monthly subscriptions or memberships that could be cancelled to save money? Understanding your daily financial situation forms the basis of your journey towards financial stability.
EVALUATING CURRENT INVESTMENTS
If you have already invested money, ensure you are fully aware of your investments. Where are they invested and what is their current value? Could you make your holdings more tax- efficient by maximizing your annual investment allowance for your Individual Savings Account (ISA)? Understanding your investments can make them work better to your advantage.
Your lifestyle, life stage or risk tolerance may have changed since you irst made your investments. Being aware of the level of risk you are comfortable taking when investing is crucial in determining if your investments are still suitable or need adjustments.
Many people start contributing to a pension as soon as they begin working but often neglect it until they are nearing retirement. This neglect can lead to missed planning opportunities, since pensions can offer tax-efficient savings invested in various strategies. Start locating any old plans now, especially those left behind with previous employers.
If they don’t provide good value or their features seem unnecessary, consider consolidating them for a lower-cost solution or consult us on how to use them tax-efficiently. Make sure your pension is working towards achieving your long-term financial goals.
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THE VALUE OF YOUR INVESTMENTS CAN GO DOWN AS WELL AS UP, AND YOU MAY GET BACK LESS THAN YOU INVESTED.
THE TAX TREATMENT IS DEPENDENT ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN FUTURE. ESTATE PLANNING S NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
A PENSION IS A LONG-TERM INVESTMENT. THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND ON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES AND TAX LEGISLATION.