So much so, that this one piece of advice will help you achieve your future financial goal, more so than anything else.
My question to you, is this. What are you planning for right now? The next 5 years, 20 years from now or maybe your retirement in 6 months’ time?
Whatever you are planning for, there is one thing you need to do now to make sure that you can actually achieve your financial goals.
So, what is it that you need to do?
I can tell you that it is really practical advice and it has nothing to do with any financial product whatsoever.
But before I tell you what it is, allow me to paint a picture for you.
One of my clients, who was getting close to retirement told me he was going to retire one year from now. So, for most of us, this will mean that our income will more than likely reduce.
So, I asked him, “What lifestyle adjustments do you think you will have to make once you retire?”
When most of us know face a big change in our lives there is a fair chance that it will have a big impact on our lives. Here are a few scenarios we come across from time to time:
- You plan to retire in a few years
- One of your children will go to university in three years
- Your wife plans a career break to have a child
- You start a new business and expect a lower income for a few years
For most of us, when it happens, we just deal with it, but is that the best way to plan?
So, that brings us to the one thing you need to consider. For your future plans to work out, you need to be a certain as you can, that you can actually afford the future scenario you are planning
So, instead of waiting for the change in your life to happen, why not experience it now. Live as though the planned change had already taken place.
How can you do this?
Take the income you expect to lose every month and put it into a separate bank account, pretend that it doesn’t exist. Live today as if you have to live on the reduced income. If you like, you are practicing for the day when your planned changes actually happen.
The exciting thing about using this strategy, is that it will work for whatever your plans might be. I can assure you, that it will get you thinking and asking some tough questions of yourself and your plans.
Number 1 of course is “Can I support my lifestyle when the changes happen?”
And if you can’t at the very least you can go back to the drawing board. It’s far better to have had a practice run first, than get to the point of no return.
My all-time favourite quote “Fail to plan, plan to fail” by Benjamin Franklin seems quite appropriate when it comes to life changing plans.
If you are considering life changing plans, that will affect your financial security, get in contact with us today. We may be able to help you avoid unfortunate problems in the future.
If you or your family would like to talk us about your financial plans for future, please get in touch for a no-obligation meeting. Go to our website www.miadvice.co.uk and contact us via our “Get in touch” form on our home page or Contact Martin Dodd on 01902 742221.
Email us at firstname.lastname@example.org
It is advisable to take advice from a professional financial adviser when making major financial decisions.
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This article has been prepared in good faith and based on Midlands Investment Agency’s understanding of the law and interpretation thereof at the time of creation. The contents should not be regarded as specific advice and we always recommend that specific advice is sort from a qualified professional. No responsibility can be accepted by Martin Dodd or Midlands Investment Agency Ltd., for any loss that may occur by a person acting or refraining from acting on the basis of this article.