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Did you know that October 7-11th is Financial Planning Week? As part of the week, the CISI (Chartered Institute for Securities and Investment) is encouraging everyone to sign up for a FREE financial planning session.
Now before you switch off and think ‘oh that’s not for me because I don’t earn enough money’ then think again. Although typically financial planners do work with relatively wealthy clients, helping them manage their investments and savings, Financial Planning Week is for everybody. In fact, if you don’t currently have much in the way of savings or retirement plans then all the more reason to take up the offer of a free session.
I know that looking at your finances can be scary but financial planning is actually something I feel very strongly about as money has an impact on so many other areas of your life. In my twenties I spent a long time ignoring debts I had built up as a student and single parent, hoping they would go away, but you know what? They don’t. All that happens is that you get more and more stressed and worried about them. At some point you have to stare your finances right in the eye and remind them that YOU are in charge. Once you stop being afraid of money, that’s when you can start to feel more in control and make proper plans.
Feeling confident about your finances is incredibly empowering.
So how does the free financial planning session work and what can you expect?
The first step is looking at where you are right now. What plans do you already have in place? What savings or pensions, if any, do you have? This was covered in a few simple forms that I had to fill out before my session with Andrew and Sarah at Berry and Oak, so that they could have a picture of my situation before we spoke.
To be honest, even just this stage was really valuable as it forces you to take stock. I consider myself relatively well-prepared financially, but I still couldn’t tell you exactly what the terms are on my life assurance, or for how long my income protection insurance would pay out should I find myself unable to work. I wasn’t even completely on top of what my monthly income and expenditure was. Just taking an hour or so to fill out the forms gave me a much clearly idea of my current position, and made me feel much more confident, before I’d even spoken to Andrew and Sarah. I also checked my state pension online, which was much easier to do than I’d imagined and is really important as it tells you how much state pension you’re set to be entitled to.
TOP TIP from Andrew and Sarah: even if as a family you think you earn too much to be eligible for child benefit, claim it anyway and then pay it back as part of your tax return. If you’re a stay at home parent, your state pension only knows to take this into account by checking to see if you’ve been receiving child benefit, so if you stop claiming because your partner is earning too much, but you’re at home raising your family, then you could miss out.
Next you think about where you’d like to be, both in the short term and years down the line when you’re ready for retirement. It might seem like a long way away but the sooner you start thinking about it, the more you can get out of it. Because that’s the ultimate goal after all right? To be in a position to be able to spend more time doing what you love. Like taking amazing train journeys around the world. (I’ve never done this but always felt like I’d love it, especially if I had to solve a mystery on board.)