Sometimes we all need a reboot, a reason to reset things and assess how we live, work and spend. Going back to money basics can help on many levels.
There have been several tipping points in recent decades. Times when economies have been adversely affected and countries and their people have been forced to change habits.
Although not everything in life is about money, it is hard to escape it.
Salaries, inflation, mortgages, investments and savings all impact us every day. Many people believe that they are not dependent upon or driven by money, but so many systems that help us live our lives are interconnected – right across the world.
Get the mix right and you have cracked it. However, we all over stretch, sign up to things without considering all the options and often fail to make plans to cover unexpected events.
Challenging global events focus minds. For many, 2020 has highlighted the need to take a more rounded view of their finances.
The good life
The coronavirus has affected people and businesses in many ways. There have been winners and losers in all walks of life.
Companies have failed while others have prospered. Individuals have seen income squeezed, while some have emerged from lockdown with cash to spare and savings intact.
Ultimately, we have all made changes.
With more time at home, gardens and outdoor space has become important. Many people have become green fingered and grown their own.
For several months people ditched the car and walked more. They shopped locally and shunned global brands that suffered because of high street shopping and freight restrictions.
As furlough payments became the norm, holidays became impossible and people reconsidered how they lived. Attention also turned to how finances are managed.
Achieving financial balance
Making the monthly numbers add up is one thing but understanding cashflow and ensuring that income protection and regular savings are part of your budget is often hard to achieve.
If you are financially stretched you should never just ignore debt or pending payments. A range of payment breaks and holidays have been possible during the coronavirus pandemic. Such flexibility can help to even out a fall in income.
Crucially, it is important to prioritise. If you have spare cash that is saved into instant access accounts, or even invested in longer term products like certain ISAs, it might be prudent to use this money to clear credit cards or loans first.
Anyone who lost a job or had their earnings reduced will have needed savings to fall back on. Having that rainy day fund is important and topping it up when you can is an essential part of ongoing money management.
Achieving financial balance takes planning. It rarely just happens. Understanding the basics is fundamental to enjoying long term peace of mind.
Talk to us about wealth planning
Wealth isn’t just about huge investments, vast property estates and access to unlimited amounts of cash. It is about having enough to do the things you want, being comfortable and being able to control your life and make choices.
It’s all about achieving the right balance, in life and how you manage your money.
We are here to help you reach that point. The Logic Wealth Planning team will work with you to make the best decisions for your circumstances.
Please call us on 0808 1234 321 or email firstname.lastname@example.org to start the discussion about how best to start enjoying income during retirement.
Please be aware the value of investments or income from them can fall as well as rise. We are here to help you make informed decisions as you put important things in place for you and your family.
* Logic Wealth Planning provides independent financial advice in Manchester, Bury, Rochdale, Cheshire, and the surrounding area, but not limited to the region.