Writing on Future Life Wealth Management’s business blog, independent financial planner Emma Baumback highlights the importance of taking ownership of one’s finance, emphasising that as the economy begins to reopen with the removal of Covid-19 social restrictions, now is no better time to consider a financial plan for the future.
A quote that Emma often enjoys reciting to clients who wish to financially plan for their future is: “If you are planning to invest, don’t - first invest in the plan!”
The thinking behind this mantra lies in the old proverb: “failing to plan is planning to fail”. In no other aspect of human life is this phrase more applicable than financial planning.
Discussing the importance of financial planning, Emma explains: “Regardless of what stage of your life you are at, whether that be taking the first step on the property ladder or considering your retirement, unless you have a plan, you cannot realistically expect to achieve your goals and tackle any hurdles or curve balls along the way. And it’s never too late – or too early – to start planning your financial future!”
Of course, now is an ideal time for any individual to start considering their finances. The Covid-19 pandemic has brought about a tremendous amount of job losses in the UK, prompted a global economic slump and wiped-out numerous businesses in the process.
However, 14 months on from when the first national UK lockdown was called, Emma believes there are some green shoots beginning to appear.
“We now have a robust vaccine programme and a roadmap to restrictions being removed, so there seems to be a light at the very end of what has been a long and dark tunnel. Stock markets have gained strong ground and economies around the world are making headway into a recovery.”
Yet, while the pandemic may have deprived us of a year of our lives, time itself has not paused.
“We are still another year closer to retirement and another year closer to that next stage in our lives”, Emma explains.
“Meanwhile, the property market has boomed through the Stamp Duty Land Tax holiday and we are graciously met with a hefty Covid bill to pay. Furthermore, throughout it all, the fundamentals of financially planning have not changed. What the pandemic has taught us is that what we previously thought could never happen, actually can happen. It has also cemented the fact that we need a plan, we need savings, and we need security.”
Emma goes on to say that the pandemic has also reminded individuals of the importance around long-term commitment to saving and investing. Although there are signs that the health crisis may be nearing its end as an immediate and present threat to life in the UK, there remains the possibility that more changes to our daily lives may be lying in wait and that the pandemic itself is far from over.
The key element, in Emma’s view, is how society continues to react and adapt to any further changes that the global health crisis may thrust upon us.
She says: “Having a flexible and robust plan in place certainly makes it far easier to make financial decisions and you are more likely to stay on track to meet your goals. But make no mistake, ‘failing to plan, plan to fail’ still rings true and I would urge everyone to begin to consider having a financial plan in place.”
Future Life Wealth Management is well-placed to provide support and advice around financial planning to all who may require it, and also offer a free consultation service. Anyone wishing to make contact with the business about any issues related to this article can do so here.