5 tips to start your wealth management journey

Managing your money well isn’t just about sticking to a budget and putting something aside for a rainy day. It requires a comprehensive approach that considers all the aspects of your life: your current needs, your family circumstances, your current priorities, your fears, and your longer-term goals and aspirations. This will ensure all your financial decisions are connected and support the outcomes you want.  

But keeping track of all your financial matters and choosing the right solutions is not easy, especially since few of us have the time and expertise to do this. That is why personal, objective financial advice is at the heart of effective wealth management. Getting advice from an expert who specialises in all the different ways to save, grow and protect your money can help you make the best decisions for yourself.  

Here are five steps to help you kick-start your journey to financial well-being.

1. Determine your financial needs and goals and draw up a budget
   Look at your regular expenses and consider what else you would like to do with your money. Then create a budget that accommodates this with your current income. When budgeting, it is important to distinguish needs from wants, ie what is essential for you and your family's everyday well-being (eg healthcare) versus what would be nice to have or do (eg going on holiday). There is nothing wrong with indulging in something you enjoy now and again, but it's important to balance this with meeting more critical needs. It is all about planning for both.
   
   
2. Reduce your debt
   Look at the cost of your debt and decide which debt is more important to pay off first. It’s usually best to start with short-term, high-interest debt and then use what you save to pay off other debt. Short-term debt, while sometimes unavoidable, isn't ideal. It is preferable to aim to avoid debt unless it can contribute to your long-term wealth, like taking out a home loan to buy a home.
   
   
3. Protect yourself and your family
   Events like death, disablement and being unable to work can have a significant financial impact on your family. While we cannot predict or prevent these, you can put plans in place to protect your family's financial future when things go wrong. Long-term insurance policies like life assurance and disability cover can provide your family with financial support if you are no longer able to do so.
   
   
4. Start saving for retirement
   Even if retirement seems a long way off, it is never too early to start saving for it. To ensure you have sufficient income to meet your needs during your (potentially many) retirement years, your money would need time to grow. The later you start, the more money you would have to set aside for your retirement, which means you may have to compromise on other financial needs and wants. A financial advisor can help you determine exactly how much you need to save to meet your retirement needs.
   
   
5. Invest to grow your money
   Whether you want to start saving for a home or for your child's education, growing your money by it will help you achieve these goals. There are many investment solutions to choose from, such as unit trusts, endowments, or shares. The solution that may be suitable for you will depend on your specific needs: how much you can set aside, for how long can you stay invested, and whether you need access to your money in a specific timeframe. A financial advisor can help you choose and combine the right solutions for your needs.

Want to know more?

• Contact your wealth bank.
• If you’re not a client yet and want to find out more about how we can help you, we would love to hear from you. You can phone us on 0800 111 263 or complete an online contact form.
• To find out more about our overall wealth management advisory offering, click here.