Sometimes the hardest part of the Financial Planning process and becoming financially well organised is getting started!

Being financially well organised is crucial for managing money more effectively. Making smart financial decisions is only possible when all the relevant information is available. However, many people find it challenging to begin this process and therefore end up doing nothing.

“Waiting is painful. Forgetting is painful. But not knowing what to do is the worst kind of suffering.”

This speaks to the pain brought on by indecision and not knowing where you stand.  When it comes to financial decisions, being in a state of “I don’t really know” is the worst.

In this article we explore why and how you can overcome these hurdles and prepare yourself to start the financial planning process.

  • Lack of Enthusiasm – Setting aside time to organise financial documents isn’t exciting and often feels like a chore. Many people put this off and bury their head in the sand.  Acknowledge that the initial effort will pay off in reduced stress and better financial decisions.

  • Tracking Spending – People will avoid tracking every pound spent, making it hard to create a budget or reach financial goals. They often refuse to even look at their bank accounts as they don’t want to know what they are spending. Start by recording all expenses – no matter how small. Use apps or spreadsheets to monitor cash flow.

  •  Living within your means – creating and sticking to a budget seems daunting. After tracking spending for a few months, make a budget that covers fixed expenses, savings goals and short-term needs. By closely examining your income, expenses, savings and investments and identifying patterns and trends will help you gain a deeper understanding of your financial health.

  •  Communication – Financial organisation shouldn’t be a solo effort. Regularly communicate with your partners about financial matters. Keep everyone informed and aligned.

While initial steps may seem daunting, remember that financial organisation leads to knowing you’ll be ok – in all circumstances – enabling you to get on with enjoying your lives. A Financial planner will always start a relationship with new clients with getting them financially well organised. Financial Planning should make you feel empowered. Empowered to make educated decisions, take charge of your life, and move forward with confidence.

If you need help to get started, then visit our Truth About Money Tool at www.ffp.org.uk.

July 2024