Financial peace of mind isn’t achieved by simply earning lots of money. It can only be reached by being secure and confident in your day-to-day finances.
So, what would achieving financial wellbeing really mean for you? Read on to find out why it matters and learn more about the practical steps you can take to build greater resilience and confidence with money, both now and in the future.
What constitutes financial wellbeing?
Money worries have become a major source of stress for many people, thanks to rising costs, economic uncertainty and competing priorities. Whilst we can’t control the global turmoil at the heart of these issues, understanding and improving our own financial wellbeing can ease the pressure. In turn, this can improve our mental health and help us make choices that align with the life we want to live.
Wellness is defined by the Global Wellness Institute as “the active pursuit of activities, choices and lifestyles that lead to a state of holistic health.” For some, this means striking a downward dog, or mediating to the soothing sounds of whale calls, but achieving a sense of wellness doesn’t have to involve contortion.
What’s important in that definition is the word ‘active.’ Wellness doesn’t just happen, we have to strive for it, find it and create it. Only then can we feel more comfortable in our own mind and body and enjoy what life has to offer.
For me, the goal is financial peace of mind and that means reducing money worries. We all have burdens and responsibilities that impact negatively on our wellbeing, but by accessing professional help to manage income and savings, we can take some of the stress out of life.
No matter how old you are or how much you earn, you can take back control by prioritising your finances and improve your wellbeing on a practical, everyday level
Don’t go it alone
There is still a misconception that financial planning is only for the rich. That is simply not the case. If you work hard and want to improve your state of mind by securing your financial future, we are here to mentor and guide you to retirement – no matter how far away it may be. The process can be boiled down to a simple five-point plan:
Clarify your goals: Before we even start studying the numbers, we take a look at your life. What does financial wellbeing mean for you? Start by identifying your short, medium and long-term goals, such as holidays, property and retirement age. Once you have a clear picture of what you want to achieve, we can work out how you are going to get there.
Map out your current financial position: This is your baseline. It’s not about judging how well – or otherwise – you’re doing, but establishing the financial facts. We will look at your sources of income and assets, as well as liabilities, such as mortgages, loans, and levels of spending to understand where your earnings are going. This then becomes your personal balance sheet and cashflow plan. Once we have a complete picture of your financial position, we can work out how to achieve your goals.
Build a tax efficient strategy: By optimising tax planning and making your money work harder, we can create a structure that will help your dreams become reality. The aim is to keep more of what you earn, legally and efficiently by using all available allowances and streamlining your finances. We pay particular attention to pension contributions (this is especially key if you’re earning around £100,000 per annum in the UK), ISA allowances, capital gains and dividend tax planning, and spousal allowances, if applicable.
Investment and protection: With steps one to three in place, your money should be working properly. At this point, we can assess what you have left to invest and use our financial planning skills to design a strategy that aligns with your attitude to risk and timeline. At Belmayne, we believe in using diversified portfolios to maximise long-term gains and a solid pension investment structure. We also advocate protecting your peace of mind by putting appropriate life, income and critical illness cover in place. Why? Because is stops everything collapsing if life throws you a curveball.
Review, adjust and remain accountable: A financial plan needs managing if it is to achieve the financial goals to which you aspire. We work continually with clients to help keep you on track and adapt your plan to life’s changes, such as promotion, children, inheritance, etc. This includes holding annual reviews, tracking progress against your goals and rebalancing investments to reflect current global economic circumstances. We are with you through every stage of life, to ensure that sense of wellbeing remains.
What should ‘good’ look like?
With the help of a good planner, financial wellbeing should mean less stress and more confidence in making the right choices. In my opinion, having a sense of direction is a hugely underrated benefit, as it gives you clarity and a greater understanding of what you are hoping to achieve. The outcome should be gradual wealth growth.
Working with a professional planner means you have an independent third party who is accountable for keeping your finances on track. We offer support when things get tough and simplify the complex jargon, taking care of the small print so you can focus on your goals and how to achieve them.
If you would like to discuss creating a professional financial plan to improve your family’s wellbeing, don’t hesitate to contact us. Our expert team is happy to review your current circumstances and retirement provisions at a free initial consultation. Telephone (01246) 298181 or email: enquiries@belmayne-ifa.com
