For many, stressors seem to involve either time or money… so we have been keen to glean some top tips from Patrick Waller who has spent over 30yrs as a financial consultant and successfully grown his own business.
Patrick is passionate about identifying what you want your finances to do for you. Perhaps you dream to be a helicopter pilot, you may want to retire early, send kids to private school or cruise around the world…. and then what will you do after retirement?
This is important because you need to get an understanding of how much money will be required to fund that lifestyle.
Understanding exactly what you spend each month is also key to working out how much you have at the end of the month. Only when you know what you spend, can you then begin to get a handle on financial planning.
Once you understand where you want to be and where you are now, you can plan on how to achieve that and put a process in place to allow you to get there. If you decide to work with a financial consultant, they will let you know what you have to do to get the outcome you want. This may not always be what you were expecting or indeed want to hear…. but better to know the situation now than further down the line.
All you can do is work with what you have and you have to be pragmatic and get realistic. Financial planning as all about making the most of your money, whatever you have.
It is sad when people die near retirement, when their whole life force has been wrapped up in work. All those things they wanted to do…… This is why it is best to start way ahead of retirement and think about what you want to do with your life, as Patrick rightly says…life is too short.
People get conditioned to their common reality of life and work and get addicted to what they have. As we start work and start planning for the future many will save money in pensions and savings. When you retire you have to turn things around and get used to spending this money! Change is difficult, people don’t like change and it is often problematic for people to move into a new way of living. Planning will help you prepare for these big life changes.
So we see those with Financial Resilience, as those who understand:
- How much money you have coming in
- How much you spend
- What your current investments are
- How much that leaves you at the end of the month
- What your goals are
- How you will go about getting to where you want to be
- If you had 24 hrs left to live – what would you regret that you had not done?
- If you knew you had 5-10 years to live – how would you live your life differently?
It seems very clear that managing your finance helps you get a grip of your life. How our ability to create and fulfil our plans, improves our awareness. So when you act upon this new awareness, your transformation can begin.
“Life is too short “ is Patrick’s free book, which gives insights into the financial world – it’s about what you need to know and what to ignore, to make your own informed choices. www.fpp-ifa.co.uk