Thinking about Life Transitions

How much time do you spend thinking about your life transitions? Those events you anticipate happening in the next few years of your life?

As we reach the end of the year, and have some down time over the festive period, it is often a time of reflection. We have chance to think about our lives. Whilst it can mean wishing some things could be different, it is also a great opportunity to decide what you want to change going forward. And that can often mean a life transition.

So, what constitutes a life transition?

It is an event in your own life, or those who are closest to you, that is likely to leave an impact. And, that impact usually causes what we refer to as money going into motion. Either money comes towards you or moves away from you.

Some life events are major – retiring, getting married, getting divorced or losing a loved one. Others may be seen as relatively minor like refinancing a mortgage or gifting money to charity. But they can all have an impact on your financial situation.

Why does this matter?

I regularly have conversations with new clients who talk about changes to their finances, that they haven’t planned for. They knew changes were going to happen in their life, but they hadn’t prepared for those financially, and it has come as a shock.

And, whilst you might think that impact is only felt when you have less income, actually having more money can be quite challenging too. I have had clients who have significantly more monthly income and increased their spending habits without thinking about the longer term implications. Their nest egg was not a bottomless supply of money, and suddenly there was a need to rein in their spending and make quite big adjustments.

Ideally, by planning ahead, you can prepare yourself mentally and financially for what is coming. Equally, you can make decisions from a position of strength rather than a knee jerk reaction. If you wish to support a family member, you will know if you can afford to do so, and when.

That planning can bring some nice surprises too. Suddenly you realise you can do some of the things you have wanted to do for some time.

I talk to clients about creating a life timeline. And plotting foreseeable life transitions onto the timeline. Of course, you can’t know everything that is going to happen but there are a number of events you can plan for.

Now is the perfect time to reflect on whether you see all of those transitions still going ahead. If you would like to change anything. Certainly many people are keen for better work/life balance after experiencing the challenges of the last year.

If you would like to explore this in more detail, please call me on 01344 875 310 and I will email you the LifePlan Workbook.

Start getting a return on your life…

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thinking about life transitions
Start getting a return on your life…

First steps: Take your free Return on Life Index assessment