Get yourself on the right financial path 

Financial freedom means having enough money to afford the lifestyle you want for yourself and your family for the rest of your life, without fear of running out or being employed or dependant on others.

These 15 top tips can help you on the right path to achieving this goal:

  1. Take some time out to consider your finances – this sounds obvious but, like everything, if you are not intentional it won’t happen
  2. Budget – even if it’s on the back of an envelope
  3. Spend less than you earn – even though its tempting you don’t need to  spend Every. Last. Bean.
  4. Don’t bury your head in the sand about what’s coming up – if your children are reasonably intelligent then there is a good chance that they will head off to Uni. If you have above average earnings then they will only get a loan to cover part of their living expenses.  If their course allows time for a part time job then great, if not, it will be the Bank of Mum & Dad.
  5. Build in a contingency for saving – both short and long term.
  6. Don’t try to keep up with the Jones’
  7. Don’t put yourself under financial pressure – what if interest rates increase?
  8. Don’t use your bonus for necessary spending – a bonus is exactly that. Don’t factor it in for school fees
  9. Apart from 6-12 months expenditure (an Emergency Fund) plus known large expenses in the next year or so don’t leave all of your savings languishing in cash deposits – at below inflation returns for the past 12 years your savings are just heading backwards.
  10. Make your long-term savings as tax efficient as possible
  11. Always think about what you will do when that salary tap is turned off – how much will you need? Where will it come from? If you need £50,000 per annum having £200,000 in a pension scheme is not going to cut the mustard.
  12. Don’t “bank” on an inheritance – there are lots of people in care homes, care homes are expensive, this can erode any potential inheritance. Unless nailed on, forgive us saying this but an inheritance is a “bonus”
  13. Invest in a diverse portfolio at the right level of risk.
  14. Make sure that your family is protected if the worst happened – as miserable as that is, think of the “What If?”
  15. If you can’t do the above yourself – get help from a trusted independent financial adviser. This is where we add value.