MARY MACFARLANE: Dealing with the financial ‘downs’ of daily life
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You never know when life will throw you a curveball, but by planning ahead and taking regular advice, you can keep your finances on track.
However well you’ve mapped out your financial future, there’s always the chance that there will be some bumps along the way.
Overcoming the biggest financial challenges, such as buying your first home or saving enough for retirement, you will likely have considered these together with other major milestones, such as having kids or starting a business, and worked them into your plan already. You might also have done a bit of disaster planning by taking out life insurance.
Often it’s managing the daily ups and downs in life which can be most challenging. Not necessarily life-changing events, but the smaller financial challenges and opportunities we all face from time to time.
Anything from redundancy to an unexpected tax bill can force you to review your finances and limit your ability to save for the future. It can be a stressful time as financial concerns can have a huge impact on your overall emotional wellbeing.
The importance of advice
Lots of people are feeling the pinch right now. Soaring inflation is a challenge for everyone, and even if you’ve always been comfortable, you may now find yourself needing to tighten your belt.
Forgoing luxuries is a no-brainer, but it does take willpower. All too often, people take more drastic steps, cancelling insurance or reducing the amount they’re paying into savings or pensions.
There are often easier and more practical ways to trim your spending without affecting your lifestyle too much in the short term or cutting back in areas that could have serious ramifications further down the line.
The current economic climate is likely to be an even greater concern if you’ve retired or are on the cusp of doing so.
You might be wondering whether you can afford to give up work or, if you’ve already retired, you may be worried about how much you can safely draw from your pension.
Taking money out of your pension while markets are falling or increasing your withdrawals could put significant pressure on your pot. Speaking with a financial adviser when challenges arise helps you ensure you have a plan in place and help set your mind at rest.
Why is planning ahead important?
Not everyone has assets they can draw on in tough times, while many simply don’t want to raid savings they’ve accumulated for other goals. A financial adviser will work with you to plan for potential problems before they happen.
By planning ahead, you’re less likely to get knocked off course when life throws you a curveball. And you don’t have to lose sleep worrying about how you’ll manage if disaster does strike.
It’s impossible to plan for every eventuality but speaking with a financial adviser can help you cope with both short-term and long-term challenges. Regular financial reviews can help you deal with dilemmas as they arise and help safeguard your financial future.
To receive a complimentary guide covering wealth management, retirement planning or Inheritance Tax planning, contact Mary MacFarlane Financial Planning on 01463 793542 or email mary.macfarlane@sjpp.co.uk
