Do you get that nervous feeling when you open a bill or log on to your online banking? Money stress is a sure-fire sign you need to take better care of your family’s financial wellbeing. Cherie-Anne Baxter of Unividual offers some expert advice
Managing your family finances is an important part of life, but it can be a daunting task. Being honest with yourself about your financial situation means planning and keeping a cool head. When you feel like you’re losing control of your finances it can affect your wellbeing in lots of ways. Feeling stressed and panicky all the time can really impact your state of mind, which will then affect your entire life and all the decisions you make, not just the financial ones. While you can’t control everything, you can have a strategy in place to make sure you’re as prepared as possible for whatever family financial surprises come your way.
Actionable Tip 1: Start with a good look at where you are right now
The first step towards financial wellbeing is to sit down and take a look at where you are right now, get some ‘financial mindfulness’ going. Write everything down: your income, expenditures, debt and savings, and take note of all the fine details. How much interest are you paying or receiving? What big costs do you anticipate facing in the next few years? Will your income go up or down?
Remember we are now in a new tax year, so when making plans it’s really important not to miss out on the tax year deadlines and tax breaks that come and go throughout the tax year.
Once you’ve got all that information in one place you can start to look at where you want to be, rather than reacting to everything as it comes along. This is the true goal of financial planning, setting a course towards realising your ambitions for the future.
Once you’ve set yourself on a new path of financial control, with good money habits baked in, it can feel liberating and empowering. You start to worry less about money and can focus more time and energy on your family and other commitments. A financial planner can help you take stock of your current situation.
Actionable Tip 2: Find the balance between debt, savings and investments
Looking at the interest rates you’re paying on debt, like mortgage interest and credit cards, will tell you if you’re better off putting any money you can spare into repaying these over savings and investments.
It’s important not to put every spare penny into debt repayment as this can leave you too short on cash if you hit an unexpected bump in the road. Likewise, you shouldn’t have too much money in a current account, as this could well be losing value over time.
You’ll need to take a good look at the savings and investments options open to you and do the math on what products offer the best return, helping you meet your financial goals in the process.
Actionable Tip 3: Don’t assume you’ve got too little to start saving and investing.
Before seeking financial advice from us, many clients assume that their starting capital is too small to make a difference. With sensible planning and solid product selection, even small amounts of capital can be used to make a positive impact on your finances.
Your goals may be 1 or 5 years away, like saving for that extra special trip with the kids. Or they may be 15 to 30 years away, like saving for school and university fees or having a comfortable retirement free from financial stress.
One thing is for sure, the sooner you start planning your savings and investments, the better chance you have of meeting those financial goals.
Actionable Tip 4: If things don’t look manageable, talk it over
Sometimes things can look bleak financially. If you’ve taken the time to produce a clear appraisal of your situation and can’t seem to find a way to make things work, it’s time to start talking about it.
There are lots of people who want to help you. A great first step is to talk to The Citizens Advice Bureau, who offer free impartial advice and can point you in the right direction for expert help covering most areas of life. You can also find some helpful resources from the Government on Gov.uk.
If you have debt you don’t feel you can repay, or perhaps that repayment will cause you genuine financial problems, then you need to tell the companies involved. It can be really nerve-racking making that phone call, but it’s the first step to getting you some breathing space. Many companies genuinely want to help you, and would rather reach an agreement with you than have you miss scheduled payments.
At Unividual we believe in helping people no matter what their financial situation. With sound financial advice and a good plan in place, there are few financial hurdles that can’t be overcome. If you’re struggling with debt or feel your financial situation isn’t manageable, get in touch for a free, no obligation, chat with one of our financial experts.
Actionable Tip 5: Don’t rush into decisions
Saving and investing needs a cool head. It can be tempting to jump on those opportunities that promise dazzling returns and great rates. Always remember that investments carry an element of risk, and their value can go down as well as up.
Some less scrupulous firms will quickly pressure you to sign on the dotted line. Try to take the time to find a firm that values you and will make the effort to understand your exact situation and requirements. If they are genuinely trying to help you, they won’t pressure you into anything or make unreasonable time-limited offers. Read this helpful guide from the Citizen’s Advice Bureau about how to choose the right financial adviser.
During our 20+ years of offering financial advice, we’ve talked to people in every situation you can think of. By giving advice that’s tailored to your unique situation we can find ways to meet your financial objectives that might be hard for the less experienced eye to see and, in so doing, relieve the stress often associated with money worries.
If talking things over with an expert sounds like something you’d find useful, or you just want to ask some questions about what you’ve read here, get in touch and we’d be happy to chat.
Hear from Thomas, Director of a music magazine and festival, about how financial advice reduced his anxiety around money
“As a director of multiple companies, my time is often limited, so having my family’s personal finances as one less headache gives me the peace of mind to concentrate where it’s most required. Having Simon to guide me through the potential minefield finance poses has been as practically useful as it has been educational. My knowledge of the systems and options available to myself and my wife have been vastly improved, and any anxiety I have in this area has been substantially reduced. Simon’s personable demeanour and considerable passion for his work is reassuring, and I would recommend him in a heartbeat to anyone wanting personal financial advice.”