Having a greater grip on your finances could improve your well-being – something which is more important than ever in these current times.
Financial security means having the finances to cover emergencies and knowing you’ve got plans in place for your future financial goals.
Mark Butterworth, head of financial advice planning at NAHT Personal Financial Services explains, “when you are financially secure, your stress levels go down, leaving you free to focus on the truly important things in life.”
Creating a budget is the ideal place to start
Feeling financially secure first requires that you know what your assets and liabilities are, as well as how your income compares to your expenses. You should have sufficient income to cover your outgoings and by creating a budget, it can help you see things with clarity.
Developing a budget that addresses both your current needs and your long-term goals is essential. It could potentially go some way to boosting your journey towards your long-term goals, as you may discover that you can change your financial approach.
Preparing for the unexpected
The pandemic really has highlighted that the unexpected can happen at any time. Of course, being ready for these types of eventualities is extremely difficult. But being prepared when times are tough is something most of us can achieve if we put in the ground work.
Having an emergency fund can help you deal with surprises without potentially getting into debt. Emergency funds are a vital part of any healthy personal finance plan and can be a great way to feel more financially secure.
Saving for the future
It can sometimes be difficult to set aside some of your income for future needs. Especially if you don’t have a set goal for your money. So by considering what you’d like to save for, and having that in your mind, it could help motivate you to save that bit more each month. Perhaps a new car, or a dream trip in the summer holidays… there are countless possibilities.
If you have certain things you want to pursue it’s wise to estimate how much money you’ll need. If you’re just saving for a rainy day, you can set a specific amount aside each month based on what you can afford.
Protecting what you have
The last year or so have shown how quickly things can change. From business as usual to teaching classes over Zoom. That’s why it can be useful to have protection in place.
Thinking about what to do if you experienced a change in situation is sensible. Perhaps considering how loved ones could be financially supported if you were no longer around.
There’s a wide range of income protection, critical illness, life insurance and legacy products available to help. These are designed to pay out if your circumstances were to alter or if something unfortunate were to happen.
Expert financial advice could help
NAHT Personal Financial Services’ are here to help you with your money matters. It might be that the thought of getting financial advice to help you plan your future seems reassuring. Or it may be something you haven’t even considered. But if a financial adviser can potentially help you on the path to achieving financial security, then it’s certainly something worth thinking about.
In fact, research for the Financial Conduct Authority (FCA) recently stated that 15.6 million UK adults might need support. They went on to explain that only 50% of these people have received support in last 12 months though.
By taking some time to talk through what you want to achieve, you could be better placed to make suitable decisions for your financial future.
As part of the personalised service provided by NAHT Personal Financial Services, you’ll benefit from financial plan that’s suited to your circumstances. Not only will these plans include your long-term strategy, they will also flag other important factors you may not have considered.
Our recommendations are likely to include stock market-based investments. These are not like building society savings accounts as your capital is at risk and you may get back less than you invested. The value of your investments and any income from them may fall as well as rise.
NAHT Personal Financial Services is a trading name of Skipton Building Society, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority , under registration number 153706, for accepting deposits, advising on and arranging mortgages and providing Restricted financial advice. Principal Office, The Bailey Skipton. N. Yorks BD23 1DN