Peter said: “At the top of my list of things for people to look into is their expenditure. From my point of view, if we know what a client’s expenditure is, then this allows us to plan much more effectively. The sooner you can spot those events on the horizon, the easier it is to plan for them.
“From a client’s point of view, if you know what your expenditure is, then you are really making a conscious decision on what you’re spending your money on. Just asking a client to review their expenditure and know what they’re spending can focus their mind and add some clarity.
“I suggest an emergency fund is the next thing on the list, which is an amount of money held in cash and is easily accessible. If the boiler breaks and the roof falls in in the same week, then you don’t need to come to your financial adviser asking them to disinvest funds from your ISA to fund it. You could pay the builder or plumber straight away and get it fixed that day.
“Once you’ve got those things in place, then you can start looking at more long-term savings, such as pensions, bonds, and investments. All these vehicles then become an option.
“The right thing for anyone to do will obviously depend on their personal circumstances and their personal Financial Plan. For example, paying into a pension is not always the right thing to do. There’s never one right thing for everyone, it’s very individualised in terms of what the best thing is.
“There are also other important things to consider in terms of family financial planning, such as life cover. It’s important to get these key blocks in place so that when you are designating money for long-term savings, you are confident that the family is alright and has a roof over their head if the worst happens.”
If you’d like more information about this article, or any other aspect of our true lifelong financial planning, we’d be happy to hear from you. Please call +44 (0)1625 466 360 or email firstname.lastname@example.org.