What is a financial health check?

A trip to the doctor can be daunting, but a financial health check is often a mystery to many people. Getting your money, savings and overall life plan in order should be a top priority. We can help to make it a painless experience…

Like medical issues, it’s too easy to put off getting your financial matters in order. It can wait until another day is often the outcome.

Although we’re all busy earning a living and dealing with life’s ups and downs, getting a clear picture of your financial circumstances can help you achieve balance and peace of mind.

Here’s our top five tips to help you achieve good financial health:

1 – Understand what you already have!

That sounds daft. Everyone knows what they already have.

Well, that’s rarely true. We’re not just talking about your current account here. What’s in your savings accounts, do you have company shares tucked away, and have you kept your contact details up-to-date with old pension schemes?

Taking stock of your current financial position will help you plan ahead. The earlier you make the most appropriate investment decisions with existing assets, the sooner your retirement pot begins to grow.

2 – Don’t throw away money

Another obvious statement, but too many people are guilty of being wasteful – or unaware of what they are paying out in interest charges, or on over-priced household services.

If you have a balance on credit card, make clearing that your priority before you consider saving. The interest you pay on store and credit cards is much higher that the returns you get from basic savings accounts.

Don’t forget your household bills. We’re not here to advise on the best gas or electricity supplier, but we always encourage you to itemise all income and expenditure.

If you can get a better deal on utility bills, do it. It’s better having the cash in your pocket than giving it to your energy supplier. You can then make that money work for you.

3 – Check your mortgage deal

We’ve helped clients for many years achieve the best mortgage deal to suit their circumstances. No two homes are the same, and no two families are identical. Make sure you make payments that suit your lifestyle.

Too often people leave mortgages untouched. There could be better fixed rate deals available, so you know exactly what outgoings you have each month. There could be an option to over-pay so that you clear the outstanding mortgage earlier and save on long-term interest payments.

4 – Saving for big-ticket items

Some call it a rainy day pot, others like to see it as a contingency fund. Planning for those special occasions in your life cost money, so establishing a reserve to cover those items as and when they arise will prevent any last-minute panic.

That could be monies to cover anniversary holidays, a new family car, college fees for your children, or cash to support elderly parents who need care services.

Whether you have identified specific needs or just want the peace of mind that your finances are in good shape, a financial health check will help to bring everything into focus.

5 – Planning for retirement

We’ll all retire one day, and some hope to finish work earlier than others. Knowing what you want from life is always a good starting point, and that’s something we help our clients understand.

If you have current or old pension savings in place they are part of your longer-term income. Coupled with bank or building society savings, planned investments and the state pension, you can build a picture of future income.

Taking out income protection policies will also help ensure that any plans you and your family have made remain realistic no matter what happens along the way.

Ready for that health check?

Financial planning for tomorrow needs to begin today. We’re a friendly bunch, all highly qualified independent financial advisers.

So if you’d like help mapping out what you hope to achieve with your money get in touch. There’s no pressure, just a desire to help you understand what you want from life – now and during retirement.

We’re here to offer wise words about money so you can make informed financial decisions and enjoy peace of mind.

Call Logic Wealth Planning on 0808 1234 321 to arrange a suitable time to chat.