When it comes to managing your money, it can quickly become a stressful situation, especially if you don’t know when or where your money is coming or going. Alternatively, you might feel as though you have your finances locked down and know exactly where your money is coming and going to.
So, why is it so important to start managing your future wealth now? Why not tackle it head on when you need to in the future?
As a leading provider of wealth management in Lancaster, here at Burton and Fisher we know how important it is to look at the future of your finances, as well as the present. In this blog post we’re going to look into why it’s important to be able to plan your finances in advance, and how you will benefit from doing so.
It’s always good to set goals for yourself, in all aspects of your life. Your finances are no different, and it’s always beneficial to plan for the future to be able to accomplish the goals.
This may be a retirement plan or just a rainy day fund for treating yourself; being able to budget for these goals is the most effective way to accomplish them. It’s really important to be realistic and understand why you want to invest in these things.
Revisiting these goals on a regular basis also allows for any circumstantial changes to be made; making the goals consistently achievable will help you in the long run, making sure they have a reasonable time frame in which they can be achieved.
Long, Medium and Short Term Goals
Once you have decided on an investment goal, you need to put a time limit on when you want to accomplish them.
With the nature of financial investment value going up and down, it’s a good idea to use your cash savings for shorter term goals and invest for any long term goals you may have. Keep in mind, you may need to access your money randomly if you have an emergency, to try and factor that into your investment plans.
Short Term Goals- These goals are usually planned for at least 5 years of commitment, but if you have cash savings and more imminent goals, this is another form of a short term goal.
Medium Term Goals- These are goals which you can commit to for over 5 years. They can involve shares and bonds which can take time to get a return on, but they should also be selected to suit your needs and monitored to make sure they are continuously beneficial to you and your financial goals.
Long Term Goals- Long term goals usually require a lot of patience to maintain and see the results of. A good example of a long term investment goal is putting a retirement plan in place.
We hope this has given you a bit of an insight into how beneficial it is to manage your future finances. Whether you simply want to save some money for the future or have some finances available for an emergency, managing your finances is an important process for you to be able to fully understand your money.
At Burton and Fisher we are proud to be able to offer the best independent financial advice to our clients, and we are dedicated to giving you the highest quality, professional guidance for all your financial management needs.
If you would like to see how we can help you manage your finances, don’t hesitate to contact us today on 01524 416511.