We do think about our finances though and in our latest research a massive 72% of UK adults said that sorting out their finances is a priority for them in 2022. This is positive news when only 9% of people currently have a financial plan.
Leigh Dunkley, Schroders Personal Wealth, believe's people need to start thinking about money in the same way that they think about other aspects of their life. How we engage with our finances, Leigh believes, is key to this. From a physical wellbeing perspective we know that millions of us now track our daily steps or food patterns using smart technology and through setting goals. So the question is how can we translate this into our financial wellbeing?
From Leigh's perspective, it starts with education: creating a society where everyone sees the value of a great financial plan, and then engagement: helping people build financial plans that are personal to them and their goals.
Top goals for 2022
Our latest research shows that the top 3 goals that people want to achieve financially in 2022 all centre around short term planning:
Become debt free
Reduce outgoings
Build an emergency savings fund
Budgeting can be a massively effective tool to help people potentially achieve these goals. At Schroders Personal Wealth, we suggest individuals should keep track of their income and outgoings, and review them at least annually. This could help them to work out where savings can be made and truly understand their current financial position. Budgeting can also help people to identify spending patterns, set financial goals and ultimately monitor progress.
Leigh's top tips for budgeting include:
Make the time: we need to start prioritising our finances in the same way as we prioritise our mental wellbeing, especially as 87% of people say that their financial concerns affect them mentally and/or physically.
Think longer term: by identifying longer term goals such as retirement age we can start to plan and budget for those expenditures. It could be good practice to get into the habit of saving now for our futures.
Seek support: less than half of people would seek support from a financial adviser, when actually advisers could be a fantastic sounding board and could help people and families to build a robust financial plan.
72% of UK adults said that sorting out their finances is a priority for them in 2022.
Remember that you’re not alone and seeking the support of a financial adviser could help you kick start the process of creating your own financial plan. To book in for your free financial health check with an adviser please visit: www.spw.com/referral/cambridge-network
There are no hidden fees and charges, and you’ll only pay if you choose to go ahead with the recommendations in your personalised financial plan.
All research taken from Schroders Personal Wealth, ‘Financial wellbeing research’, December 2021.
You may also be interested in a talk Schroders Personal Wealth is presenting for Cambridge Network members on 24th February on Creating your own financial plan ahead of the tax-year end - Book Now!