Financial planning is one of the most important tasks that anyone can carry out, and it is an
activity that will often span a person’s entire lifetime. From planning to working out the
impact of changing circumstances and having an eventual goal in mind, it can be difficult to
know how to approach financial planning in a manner that is sustainable for the long term.
Very often, people find themselves struggling between sticking to a long-term plan and
dealing with the realities of life and changes that happen along the way. One of the most
important factors to consider is being able to choose when to change or update your plan,
and not get sidetracked by new developments that could potentially stand in the way of a
Here, we take a look at how significant life events are likely to change your financial plans,
and how being flexible can actually be a good thing in the long run.
As your career begins to pick up pace, it is not unreasonable to expect your salary to
increase over time. If your income rises significantly, you may be lucky enough to raise your
lifestyle expectations. However, this should be accounted for in your financial plan.
People are often tempted to spend more freely when they receive an unexpected pay rise,
but doing so can be to the detriment of their long-term financial goals. It is important to be
sensible in the event of a salary increase, which means incorporating this into your financial
plan to keep you on track for the future.
Once you get married, there are certain things you can do to ensure both you and your
spouse are making the most out of your finances. Take some time to discuss your savings
and investment goals, and where appropriate make plans that are suited to both of your
ideals. Should you wish, you can detail how much you earn, spend and save each month,
and decide how you wish to approach savings and investments going forward.
A number of income splitting strategies are available to help you take advantage of any
lower taxes that may be available off the back of getting married. Researching these could
help to maximise your finances on an ongoing basis.
Starting a family
Even if having children has been a part of your long-term plan all along, you will need to take
the needs of your growing family into account, and adjust your plan accordingly for each
Many people who start a family begin to worry they are not putting enough money away in
order to prepare for their child’s future, and factors such as driving or helping them go to
university. If this is the case, you may want to increase your contributions.
Protecting your loved ones
When you have more responsibility, it is essential to make plans accordingly to ensure your
family are protected in the event of your death. Without proper plans in place, such as a will
or updated financial plan, you will die intestate. When this occurs, your assets will be
distributed on your behalf when you die. This includes any bank accounts, property, and
other assets you own at the time of death.
When planning your finances, it is vitally important to adopt a dedicated approach in which
you rigidly stick to a plan over a long-term period, whilst allowing flexibility to adapt this plan
when your circumstances change.
Speak to Navigate Wealth today for advice on all aspects of creating a financial plan.