This guest blog is from Steve Hennessy, a Chartered Financial Planner with Myers Davidson Ginger Ltd. Steve explains here the benefits of financial planning and how it is important for those having gone through divorce….
“It can be hard not to lose sight of what really matters when life throws up a big challenge. Having a Financial Plan will help you protect your Future Self, and bring shape to your present financial choices.
What is Financial Planning?
Financial Planning is undertaken by individuals who wish to organise their financial affairs to achieve their financial and lifestyle objectives more readily. A Chartered Financial Planner provides objective, professional assistance and advice.
What are the benefits?
Having a Financial Plan will help you to deal with the conflict between your present needs and wants, and your future needs and wants.
Focussing on short term priorities at times of stress and strife is a natural tendency. There is a huge amount of academic research that supports the notion that, when we feel threatened or insecure, we have evolved to take snap decisions based on gut instinct and not too much analysis.
No matter how difficult your situation, you will be better off taking control and focussing on your life goals.
Even if you have just come through a very difficult divorce, there is no reason why living for today and planning for tomorrow should be mutually exclusive.
Your Financial Plan will be the best advocate for your Future Self.
Your Future Self is of course the first person to suffer when your Present Self behaves without forethought.
How Does it Work?
The basic three principles work for any individual, no matter what their stage of life:
- Set your personal goals
- Understand your financial resources
- Create your Financial Plan
How to get started:
Write down your realistic short, medium and long term goals.
Take your time over this task and be as detailed as possible; it makes the rest of the work much easier.
Think about different areas of your life
Family, friendships, career, travel, health, creativity, volunteering. What are the things that you want to have and do throughout the rest of your life?
You need to understand your assets and liabilities, as well as how they are likely to evolve over time. Collect all statements and correspondence from bank accounts, investments, pensions, insurance and credit cards. File the important information and shred the rest.
Only once you’ve done this groundwork can you start to make sense of your financial life, and order it so that supports the achievement of your most cherished life goals, rather than providing just another layer of complexity in your life.
Nothing should distract you from achieving the life you want. Your Financial Plan will:
- Facilitate the discovery of what is truly important to you
- Help you make good decisions in the face of strong emotions
- Assist you in using your money in accordance with your values
- Keep you accountable for pursuing your goals and values
Its time to get your financial life in order.
Do not simply wish that you could do something or have something, why not apply yourself to make it happen?
Design, implement and maintain a Financial Plan that reflects your goals, principles and values and benefit from the feeling of being in control of your present and your future.”
Steve is a Chartered Financial Planner who can help you understand and manage your investments and pensions. Financial planning is aimed helping individuals organize their financial affairs so that their lifestyle objectives are achieved more readily. As an independent financial adviser Steve provides objective assistance to legal professionals, advising specifically on Pensions on Divorce and Portfolio Management for trustees, Attorneys and Deputies. Get in touch with Steve at email@example.com or 01296 392999.
If you have found this blog helpful, click on the links below to read other blogs in this series:
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