Quick Tips To Make The Most Of Financial Planning Month

October is Financial Planning Month, which we promise isn’t as scary as it sounds. This is a great opportunity to make sure your money is working hard for you –no matter how much you earn.

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Let’s start with a couple of definitions.

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What is wealth? 🤑

Wealth is different from available cash in your pocket. Think of wealth as the value of your portfolio, taking into account your different assets, such as your investments, savings, and any property that you own. 

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What is financial freedom? 😎

Ultimately, it’s about not having to worry about money at all. However, for many people, financial freedom can mean not living month to month without any sort of backup funds. 

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Why is financial planning important? 🤔

Used wisely, money can provide a buffer against life’s uncertainties. Invested properly,your money has the potential to multiply. Proper financial planning can help in several ways.

Achieving your goals – Owning a home, buying a car, providing for your kids. It all starts with a solid financial foundation. 

Preparing for emergencies – Having a few months’ salary saved up can take some pressure off should you need to pay up for an emergency.

Retirement security – Whether you plan to actually retire from work or not, having some money built up for your later years is wise.

Debt management –  reducing debt is just as important as building wealth.

Wealth building – A combination of regular saving and investing is going to give you a good shot at increasing your wealth through the years.

So, where should you begin with your financial planning? Let’s look at some of the essentials for both saving and investing. 

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Easy tips for saving 💰

Open a Savings Account: Want a high interest savings account but don’t need instant access to your funds? A notice account could be perfect for you. Open a notice account, add to your savings and simply wait a set notice period to withdraw. Get started here. T&Cs apply.

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Review your budget: We know you’ve heard this one before, but it's really important to review your budget frequently just to make sure you’re on top of things.  

Build an emergency fund: You never know when big life events might happen, so it's best to always have a buffer. Start putting away a small amount each month to ensure you’ve got enough for those things you can’t exactly plan for.

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Easy tips for investing 📈

Get your Stocks & Shares ISA sorted: You can put £20,000 of your own money into a Stocks and Shares ISA each tax year from April to April. Any profits you make on it are sheltered from tax. And because you’re investing in the stock market at the same time, your money has the potential to grow faster than with an ordinary savings account (though, be aware, your capital is at risk, and the value of your portfolio can go down). When investing your capital is at risk. 

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Stop touching your portfolio: Long term investing is the key. Markets will fluctuate with the economy but the longer you leave it the better off you should be. Invest regularly, too, so that you’re consistently building and forming good money habits.

Pensions are a must: Make sure you’ve got a pension in place with your employer. You might not want to think about your retirement now, but when it comes, you’ll be glad that you did. Your employer will usually contribute to your pension, too. Having a pension can reduce the amount of tax that you pay, as well. 

Self employed people can set up a private pension –worth looking into alongside your savings and investments. 

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You can do it: It’s time to start

We know that this can be a lot to take in, and that financial planning can sometimes be overwhelming. But the fact that you’re reading this means that you have the drive to put a plan into action.

You don’t have to tackle everything at once. Start with a Savings Account, or a Stocks & Shares ISA, and explore the rest one step at a time. There’s plenty more information on the Learning Hub.

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This is not financial advice, always do your own research. When investing your capital is at risk. Tax treatment depends on your individual circumstances. 

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Team NuWealth