A financial plan; what is it, why it’s important and how can you get one

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A financial plan; what is it, why it’s important and how can you get one

Lifetime news

Posted on: 24/08/2023

Finance professionals and experts often talk about having ‘a financial plan’.

But just what is it? Why is it so important? And how can you get one?

Well, the first thing to point out is that money is an important subject. It often plays a crucial part in how you live your life, now and in the future.

And by taking control of your money – and having a clear understanding of your financial position – you may be able to offset anxiety and stress, and in doing so make good financial decisions, rather than merely guessing.

Financial planning is an ongoing process that helps you make sensible decisions about money, so that you achieve your personal goals and live your best life. It is about being organised. It is far better to be in control of your finances rather than letting those finances control you.

A financial plan will give you the necessary knowledge and understanding of your current financial position, and provide the necessary signposts you need to attain the goals and ambitions you’ve set. In other words, a purpose-built, flexible financial plan is a road map to your objectives.

A plan shows you where you are now with your finances, and shows you what the future looks like. It can also demonstrate different scenarios, which can incorporate your future goals and ambition, for example finishing work earlier than planned, buying a new house, or funding a child through university.

Everyone can benefit from having a personal financial plan to follow. Wherever you are on life’s journey, from being in your early 20s and weekends away with friends or seeing the world; your 30s and perhaps looking to settle down; your 40s and 50s where your children are your top priority; and all the way through to your 60s and looking ahead to your life after work, a sound financial plan can be your trusted guide.

When it comes to financial planning there is something very important to remember: you are unique.

You are different from everyone else out there. Your situation is different from that of your boss, your work colleagues, your next door neighbour, your close friends.

So a financial plan has to be bespoke.

Many of us find our finances confusing and we all have questions:

  • How will my family cope if I’m unable to work?
  • How can I manage debt?
  • How much should I save for retirement?
  • What age can I retire?
  • Can I afford to buy a house?

A financial plan can provide the answers to such important questions, and help you make the most of your income. It provides you with the skills and capabilities to manage your money, on a daily basis and for the future.

At Lifetime, we have coaches and financial planners who can ensure that your personal plan will incorporate all the aspects of your financial circumstances, will help you reduce unnecessary costs, and generally improve cash flow to get the most from every penny you earn.

You may want to maximise tax allowances, or sort out your various pension pots. You may want to save for your children’s education, yearly holidays, or create a ‘rainy day fund’ for those unexpected difficult times. All these things can be placed within the context of your personal financial plan.

And by regularly reviewing and, if necessary, revising your plan, you will be able to keep your finances on track to reach your goals, even if your circumstances change.

Why not book a chat with a Lifetime coach, to see if you would benefit from having a financial plan: https://outlook.office365.com/owa/calendar/[email protected]/bookings/



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