FINANCIAL NEW YEARS RESOLUTIONS 2024

Now that the Christmas and New Year festivities are over for another year, it is customary for many of us start to focus on our plans, goals, and aspirations for the forthcoming year.

Each year passes by evermore quickly, so it is important to step away from the noise and take time understanding what really matters to you and how you want to live your life.

For the many of us who overindulge throughout the Christmas period, getting our diet and fitness back on track seems to be top of the list and with it a resolution to make use of the gym membership that we have been paying for, but haven’t used in some time. For others of you, it may be to learn a new skill, a language, perhaps focus more on your career, or less! Added together, these form our life goals.

Studies show that our financial health can have impact on our overall health and wellbeing, and certainly has influence over our life goals. So just as we inventory check our personal health at the start the year, so should we our financial health. The new year brings with it a good time to review our current financial position, goals, and aspirations, together with our life goals and aspirations. The two have influence on each other.

Unsurprisingly, the most popular financial resolutions among people who consider them, are to spend less, pay down debt and save and invest more. However less than half of people who make resolutions are still on track to meet their goals come the second half of the year. Why is this the case? Because more often than not, they haven’t identified and understood their true motivations and because their resolutions are too vague – “spend less”, “pay down debt”, “save more”. Make a specific game plan.

Often when we meet with prospective clients, the first thing that they say to us is:

“I have been meaning to review and understand my finances for some time”

Or perhaps more specifically:

“I have been meaning to implement a retirement savings plan for some time………”

Whilst it is never too late, the advantages of starting to save sooner are well documented, benefitting, not least, from what Albert Einstein referred to as the eighth wonder of the world - compound interest, longer term market returns, as well as the tax benefits and savings in the various wrappers available to investors and savers. This being the case, your staring point is to understand your own life goals – which will drive your financial planning requirements and actions.

So, as we start 2024, now is a good a time as ever to:

1.       Take inventory of your current financial position. A clear view of your financial position sets the stage for effective budgeting.

2.      Review your investment products, portfolios, performance, charges, and allowances.

3.      Review your household expenditure and bills. Look for savings where possible.

4.      List your life goals.

5.      List your financial goals.

6.      Model a cashflow forecast & create a budget.

7.      Perform gap analysis.

8.      Create financial plan.

9.      Implement required actions to meet goals.

10. Stress test and implement necessary protections. “What would happen if………How would this impact me and my family”.

11.  Ensure your Will is up to date.

12.  Review annually or if circumstances materially change*.

*Your wealth needs to serve you differently at different stages of your life and as such your Wealth Plan is not static. It is designed to change over time, as your circumstances and priorities change).

If you have a destination in mind, Patronus Wealth Planning Team in partnership with you can help you create a financial plan mapping out your journey to help you get where you want to be. Contact us here if you would like to discuss any aspect of your financial well being.