Smart Financial Planning

One of the most important things we do as your financial planners is help you to see the big picture, but we’re also here to make sure you’re looking at the right picture to begin with. Something we see quite often is clients who focus completely on making money.

Now, there’s nothing wrong with aiming to make as much as possible – to live the life you want, plan the future you deserve and give future generations the best start in life, more money is a good thing. But ‘more’ isn’t really a goal in itself. Smart financial planning focuses on the end as much as the means and it’s important to really understand how much money you’ll need and when, to do the things you dream of doing.  

That’s what we mean when we talk about ‘life-focused’ or ‘lifestyle’ financial planning. Proper financial planning uses this sort of context – it’s not numbers on a sheet of paper, it’s a plan for your future. We get to know you and we learn all about the things you want to achieve then we build your plan around what really matters to you. There are some key questions we’ll ask – What do you really want to do? When do you want to do it? How much will it cost? Can you afford it now? And if not, when? 

You’ll notice that money only comes in halfway through those questions – that’s because we focus on your aspirations, future lifestyle goals and career wishes before we even start thinking about money. Only when all this information in on the table do we start thinking about the right approach for the life you’re describing.

Thinking long-term

Financial planning isn’t a one-time exercise any more than a big workout gets you fit, or one salad sorts out your waistline. It’s something that stays with you through life. It takes discipline to stick to your plan, but good financial planners are by your side whenever you need them. Over the years our lives change and so do our finances.

We use the ‘bucket analogy’ to illustrate how the same life can look quite different over the years. First, we throw all your assets into the bucket – bank accounts, savings accounts, investments. Then we look at the things that empty the bucket, money for food, mortgages or rent. Money flows back in through salaries, dividends, inheritance and later, pension income, and so it continues. It’s always the same bucket, but over the years the level changes and what it’s filled with changes too. We need to find a balanced approach that supports your lifestyle both now, and in the future, allowing you to live the life you enjoy.