The cycle of life has always afforded us moments when we can draw a line under an event or period of time. It could be New Year, the start of a new term, or new kid on the block: a post-pandemic rebalance. It can be cleansing, reaffirming, or simply a good tidy-up. But whatever your trigger, the process is the same and the result is more control and hopefully greater motivation to keep matters in check.

Your financial evolution

If 2020 taught us anything it’s that not only can the impossible happen but also that with planning and a little forethought you can certainly mitigate some of the disasters that might strike.

We have always preferred to take a holistic and long-term view regarding financial planning. Yes, specific issues crop up, such as choosing a mortgage or help with pension planning but in general, financial decisions should be made with as wide a perspective as possible.

Your priorities will change as you enter different phases of your life and the focus will shift but a financial plan that allows for adjustment can help smooth out some of the bumps along the way. First though you need to have a full picture of your income and expenditure – and to consider ongoing costs and changing circumstances. What better time than now to take a closer look?

Financial planning is about more than savings and investments; like it or not, money makes the world go round so it makes sense to ensure whatever money you do have is working as efficiently as possible.

Infinity and beyond

This applies as much to our lives now as it does to the plans we have for our dependants and beneficiaries when we die. One of the quickest financial housekeeping wins you can action is to make sure the key people in your life know where all your important information is. Obviously it’s made really easy if you have everything filed with your Financial Planner but even having it written down and stored safely (and at least one trusted person knows where it is!) will help save a lot of time and anxiety. Checklists are available online covering all the basics such as who your solicitor is (and therefore where your Will is kept), all financial details, including savings and investments, as well as any outstanding debts. You should also create an inventory of your digital assets, which can include those assets with a financial value eg cryptocurrencies and loyalty points, and those with sentimental or personal value eg digital photos and social media accounts.

Your list can also include an outline of your funeral plans and who your main beneficiaries are. Granting Powers of Attorney to a trusted individual can help further should you lose mental capacity or die, and this person should be the keeper of this information.

Physician, heal thyself!

We’re not just pointing the finger outwards though! We’ve been taking steps to get our own ducks in order by improving our service offering. Talk to us if you would like help getting your financial life in order.

Did you know?

• The first rule of successful financial management is: income must be equal to, or greater than, expenditure. Don’t spend more than you’ve got. Ask yourself: do I require it, or do I desire it?
• Unlike your physical assets, ownership of digital assets is tricky as they could be owned by you or a service provider. Each online service has its own end-of-life process, which must be followed if your family are to gain access to your digital assets. Take time to understand the policies for each of the services you use and then make a plan for each asset.

A version of this article originally appeared in Style of Wight March/April 2021.