26/02 - Category: Home, Planning Ahead

Life takes on meaning when you become motivated, set goals and charge after them in an unstoppable manner. -Les Brown

These days it’s hard not to open a newspaper without being inundated with stories relating to finance. In this current economy, our grip on money may feel less secure, making what we choose to do with it very important. You may have found that concerns around job security, debt, your budget and the future have suddenly become top of mind. But when did you last take 30 minutes to properly review your finances

Depending on your situation, you may find you could benefit from some expert assistance. This could be in the form of an accountant, a financial advisor, a personal banker. Or, if you’re comfortable tackling this yourself, you could use the tools on bemoneyconfident.com to help you identify your financial goals and help plan a budget.

Being honest about your current situation is paramount to the success of any review and there are some simple ways to work this out.

First of all, be clear about what you earn and how much you spend. If you’re unsure, consider keeping a spending diary for a few weeks to track your expenditure.

Once you know this, you should be able to work out a budget for yourself using a spreadsheet or a workbook. This process took me a few weeks to fine tune as I kept forgetting about various expenses. As unexpected costs will crop up (like orthodontists bills!) it’s worthwhile to plan for these too.

Be realistic about your goals and objectives. Having a firm view about what you want to achieve will provide an incentive to stick to your budget, whether it’s reducing debt, a holiday, a car or investing for the future.

Also consider what kind of time frame you have allowed yourself to achieve your goals. It’s important to make sure it’s realistic, and doesn’t require too much sacrifice, otherwise you may find it harder to stick to your budget.

What has also helped me is to break my goals down into short and long-term. My main objective is long-term, but I have also set some mini-goals for myself over the next couple of years like a holiday, and some new furniture. Reaching these goals should give me the encouragement to focus on my longer-term goals.

Taking just half an hour regularly to review your finances can build confidence, bring peace of mind and help you to take control of the future. Good luck!

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