At Globe IFA, we understand the key role finances play in our daily lives.
Money is one of the leading causes of arguments within couples, debt brings stress and anxiety, and financial housekeeping – from monthly budgeting to annual tax returns – can feel like a never-ending cycle of pressure.
On the other hand, a firm grasp of household spending, the security of financial protection, and the peace of mind that comes from knowing you have a long-term plan in place can feel freeing. That kind of financial wellness is priceless.
Helping you to find your sense of purpose, the dream to aim for, and then providing a clear path to achieving that dream is why our dedicated team is in the profession we’re in.
But financial wellness will look different for everyone.
Keep reading to find out more about what it means for you and how to achieve it.
Financial wellness might mean forming new habits and re-learning old ones
We all have different attitudes to money, and they are formed early. A Cambridge University study for the Money Advice Service back in 2013 found that our financial attitudes are formed by around age 7, but that doesn’t mean they are set in stone.
Your attitude to risk might change as you get older or under the influence of a partner. Your tendency to save for a rainy day might turn into a desire to spend once grandchildren arrive.
We can all learn, grow, and change our habits and attitudes throughout our lives.
Doing so might be key to achieving financial wellness.
Financial wellness isn’t about having the largest amount of money you possibly can
An important first step towards financial wellness is understanding what it might look like for you.
If everyone decided that financial wellness meant being the richest person alive, that would mean a lot of disappointed people.
That is why when we initially spoke to you, the first step to building your financial plan was thinking about your goals – from what your ideal retirement looks like to the legacy you want to leave behind.
Your plan is aligned with your time frames and goals. Investment is never about making the highest amount of money in the shortest possible time. It’s about reaching your objective within your preferred timescales while taking a level of risk you are comfortable with.
Financial wellness has nothing to do with what your neighbour has
As you get older and your wealth grows, your lifestyle will likely change, and your outgoings could increase. This lifestyle creep is one reason why financial wellness has nothing to do with your net worth.
Budgeting is important at all wealth levels and is another key reason why the peace of mind that comes from a long-term plan and a trusted relationship with a financial adviser can be so valuable.
Your neighbour’s brand-new car could be leased, their once-in-a-lifetime trip funded by an unexpected inheritance. We rarely know all the ins and outs of other people’s financial situations, so focusing on your own goals is key.
This is why investment trend-chasing can be so detrimental. Just because lots of people are acting in a certain way doesn’t mean it’s right for you.
Financial wellness isn’t about the money you have, but what you do with it
As financial professionals, the team here at Globe IFA want to ensure you can live the life you want. That means being financially comfortable, but it doesn’t mean dying a millionaire.
Sometimes the hardest conversations we have are convincing our clients that they can afford to – and deserve to – spend their hard-earned money.
Financial wellness might mean ticking items off your bucket list, making memories with family, or donating to a charitable cause you care about.
Financial planning can help here by showing you the potential outcome of the different choices you might make. Rather than planning on leaving a legacy upon death, we might show you the tax and lifestyle implications of giving your money away during your lifetime.
Doing so could lower a potential tax bill, meaning your beneficiaries receive more of your wealth, but it also means you’ll still be around to see the difference that money makes. Your loved ones might also receive the money when they need it most – when buying a house or starting a family, for example.
And this could be far more rewarding.
Get in touch
Just as your financial goals and circumstances are individual to you, so too does financial wellness look different to everyone. If you’d like help finding your own version, we’re on hand to help.
Please email hello@globeifa.co.uk or call us on 020 8891 0711 to discuss how Globe IFA’s expert financial advisors can help you manage your long-term financial plans.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
