New year is a time for new beginnings. Perhaps you have struggled in the past to get your finances in order and have designated 2024 the year you finally take matters in hand. Our 2024 financial wellbeing checklist is just what you need to ensure that you have all bases covered.
Why financial wellbeing is important
Financial wellbeing plays a pivotal role in shaping our overall wellbeing. If things are difficult financially, the stress it causes leaks into every single aspect of our lives. Getting your finances in order brings many benefits including:
- Reduced stress
- A sense of security and stability
- Improved mental and emotional wellbeing
- A greater sense of control
- The ability and headspace to pursue our aspirations
- Resilience in navigating life’s challenges
That’s one reason why Infinity’s financial advisers love their jobs. They gain great satisfaction from helping bring order to such a fundamental part of our client’s lives. The ripple effect of rock-solid finances is huge, and they see the positive impact this has on a daily basis.
How to use this financial wellbeing checklist
We’ve broken the financial planning process into twelve steps. For each step there are a few questions to answer. Any that you reply ‘no’ too, require you to take action!
But what this list will give you is the concrete actions you can take to get your finances in tip top shape. When you can answer yes to all the questions, mission accomplished, although financial planning is an ongoing process which is never completed so you need to review your situation regularly.
Your financial planning: a 12 point plan to getting your finances in order
- Assess your current financial situation
- Define your financial goals
Do you have concrete short, medium and long-term goals? Are your goals SMART?
- Create a budget
Do you know how much you earn each month?
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- Does your monthly income exceed your expenditure?
- Have you allocated a percentage of your income to monthly saving?
- Manage your debt
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- Do you have any unsecured debts?
- Do you know exactly what you owe and to whom?
- Are you paying off unsecured debts at the fastest rate you can?
- Are you paying the lowest possible interest on your debts?
- Build an emergency fund
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- Do you have an emergency fund worth six months of regular expenditure?
- Is your emergency fund easily accessible if you need it?
- Is your emergency fund earning as much as it can while remaining accessible?
- Save for retirement
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- Have you checked if you are eligible for a state pension?
- Are you saving each month towards retirement?
- Is the amount you are saving towards retirement aligned to your income and goals?
- Are you taking advantage of any employer matching contributions available to you?
- Are you taking financial advice?
- Do you have a cashflow analysis to plot your income and expenditure over the long term?
- Do you have any lost pensions?
- Invest wisely
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- Are your savings earning a return aligned to your tolerance to risk?
- Are your savings diversified?
- Have you checked that you are investing into the best products available to you to maximise your return?
- Protect your savings and your family
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- Do you have adequate health, life, critical illness and property insurance coverage to protect your family?
- If you needed/wanted to be repatriated following a serious accident or illness, would this be covered by your insurance?
- Are the beneficiaries of your life and critical illness policies up to date?
- Do you regularly review policies to make necessary adjustments based on changing circumstances?
- Plan for major expenses
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- If you want to buy a home, start a business or send children to university, have you factored these expenses into your financial plan?
- Are the funds set aside for these things invested wisely, earning the maximum return within relevant risk parameters?
- Do some estate planning
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- Do you have a legally valid will that reflects your current wishes for asset distribution?
- Have you nominated an executor of your will?
- Does your executor and next of kin know where to find your will and other important documents?
- Have you nominated guardians for your children?
- Have you considered the inheritance tax obligations on your estate?
- Have you taken steps to minimise the IHT bill on your estate?
- Review your financial plan regularly
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- Do you periodically review your financial plan (quarterly or annually) to track progress towards goals and make necessary adjustments.
- Do you revisit your budget, investments, and goals to ensure they align with your current financial situation and aspirations.
- Get advice from a professional financial adviser
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- Are you sure you have made sound financial decisions for all the above steps?
- Do you have a cheerleader who can give you bespoke advice, help you define, and stick to, your goals and keep you motivated?
Get your financial affairs in order in 2024!
If you can’t answer yes to every question, you may need to take action. The links will help you understand how to turn a no to a yes. If you can’t find the answers you are searching for, your Infinity financial adviser can help. If you don’t have an adviser, we’d love to chat and see how we can help you. Do feel free to get in touch.
Remember, financial planning isn’t about quick fixes. If you’re just starting, the job of getting your finances in order will be a gradual process. Consistency, discipline, and adaptability are key factors in successfully managing your finances.
There are 12 steps in this checklist so why not tackle one each month over the course of 2024 and finish the year in incredible financial shape. What an achievement that would be!
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