Everything You Need To Know
- Simplicity increases engagement. When things are simple enough to be understood at-a-glance, then engaging with our finances is easy and doesn’t take much time.
- Simplicity reduces the chances of mistakes. It’s the old analogy of spinning plates. The more plates that are spinning, the more difficult it is to stay on top of them and keep everything going so it doesn’t all come crashing down.
- Simplicity keeps costs down. Old plans from years ago will likely have archaic charging structures. There may be limitations and costs on how you get money out, too.
Everything You Need To Do
- Listen to Season 24 of the podcast. One episode on each area of our finances from planning to protection, to budgeting to the annual review.
- Ask yourself if you feel in control. When you think about your financial situation, do you feel as if it is a mess? Do you shudder at the thought of sitting down and sorting things out? If not, then really, you’re fine. You should review things regularly though.
- Set aside some time to take an initial look. Pull out your calendar and book an appointment with yourself. Do it at a time when you’re likely to be energised. So probably not on a Friday night after a long week at work.
- Give yourself a score. Do this across various areas, such as:
- Your income and outgoings – your budget.
- Your cash savings – are you earning interest as well as you could be?
- Your investments and pensions – do you know where they all are, and how they are invested.
- How everything is aligned with your goals – do you even have goals and objectives?
- Your tax – easy enough if you’re an employee, but if you’re self-employed, not so much, or if you have a complex situation.
- Your legacy – what will happen if you or your partner die? If everyone provided for? Will all debt be paid off? Is your insurance sufficient?
Score yourself between 1 and 5, say, with 1 being that you really DON’T feel you’re on top of that area, and a 5 being that you’ve nailed it. Work out the average, but also consider the individual areas too, noting any that really need work.
- Seek advice or get serious yourself.
