Why you need to keep on your financial path

I know – you’re wondering what on earth I mean about keeping on your financial path! In essence, I want you to remain focused on your financial goals, but be flexible enough to review if your end game is still the right one for you.

Let’s explore that in a bit more detail by sharing a recent client story…

Three or four years ago I was chatting to a client about what he wanted to do about retirement and his future plans. I planted the seed that it might be possible for him to retire before he was expecting. I could tell it had got him thinking, but also that he thought it was unlikely.

As with many people, the pandemic caused him to re-evaluate. He had a change of job and he wasn’t particularly enjoying the role, and that caused him to reflect.

He asked me if it was possible for him to retire early. He was clear that there were still things he wanted to achieve – moving house, getting a new kitchen and a new car, so he wanted to make sure they were still possible.

We sat down and talked in more detail and then I ran the numbers for him. I’m delighted to say that it is more than possible, and he is over the moon! He has a six-month notice period, which is great timing, as it allows him to get all his ducks in a row before he moves on to the exciting new chapter of his life.

Needless to say, I will let you know how he gets on.

Why have I shared this story?

Because it’s important to recognise that your circumstances can change – voluntarily or not. Whilst that might not always mean good things, it does instigate reflection.

I believe you should be reviewing your financial plans on an annual basis. And this is less worrying about the performance of funds, and more about if the financial path, and life path you have chosen for the future, is still the right one for you and that you are still on course.

Is your work life still working for you?

Would you prefer a less stressful job, or just to cut down on your hours? Or maybe you would just like to throw the towel in completely. What’s happened in your personal life, and have any changes caused you to rethink?

How much money is enough now and into the next stage of your life? Sometimes, when I first do this exercise with clients, they set a very high bar for how much money they feel is necessary each year.

As we get older our outgoings usually reduce, but often so does our perspective. Things that seemed super important in our thirties, are suddenly far less important when we reach our late fifties. So, do you need as much money as you predicted?

Of course, this is not just about planning for retirement.

You know I am a huge fan of focusing on living your very best life from right now, not planning for a day that may never happen. So, I always encourage clients to ensure they are enjoying life on the journey not just focusing on the end game.

When was the last time you reviewed your life goals and your financial ones? If you’d like to run the numbers or just have a chat, give me a call on 01344 875 310.

Start getting a return on your life…

First steps: Take your free Return on Life Index assessment

financial path
Start getting a return on your life…

First steps: Take your free Return on Life Index assessment