Big life events and milestones can have a significant impact on our finances. Whether it’s purchasing your first home, starting a family or retiring from work. We’ve rounded up some key events you might face in life and how to prepare yourself financially.
Some of the milestones and life changes that could affect your finances include but aren’t limited to:
Certain life events are planned for, while others can be a little more unexpected.
Regardless of the life event you’re facing, here are some of the ways you can help manage your money:
With any life event or financial milestone, it’s important to take stock of your current situation and how it impacts your money.
For example, has your income been affected or will you need to put a larger percentage of your earnings towards living costs?
Whatever the situation, make a note of how it affects you financially.
When dealing with a major life change, it helps to get all of your key documents together/
For instance, you might need to gather your bank statements and credit card bills or tax receipts.
This will also help you build a clear picture of your finances and how they might need to adapt in the future.
It’s likely that the budget you used before the big life change or milestone might not fit your new circumstances.
For instance, if your income increases or decreases. Or perhaps your expenses rise due to taking on more financial responsibility.
Your new financial plan needs to reflect how your finances stand now to give you the best chance of getting your finances on the right track.
For more tips, check out our podcast episode about budgeting and other money hacks.
Wherever you are on your journey, it’s vital to prioritise your financial responsibilities.
These typically include your essential financial expenses such as rent or mortgage payments, debt repayments, bills, food and transport.
If you find yourself unable to cover essentials such as housing costs, bills and debt repayments, get in touch with your providers as soon as possible.
Your provider can help you find affordable repayment options to help keep your finances in order.
Sometimes a major life event requires dipping into your emergency savings fund.
It’s always a good idea to have a plan on how you’ll top up your emergency savings backup so you can cover emergencies in the future or work towards another life milestone.
Managing your finances can be complex, so if you feel overwhelmed, you’re certainly not alone.
If you find that even after trying to manage on your own, you need help or support, an independent financial adviser might be able to help.
Depending on your circumstances, an independent financial adviser can look at your situation and provide clear advice on the best next steps.
Although most advisors offer a free consultation call, you’ll usually need to pay a fee for advice you receive.
The price you’ll pay for financial advice varies depending on who you use. Advisers usually charge:
Your financial adviser must tell you how much the advice will cost before you use their services.
If you’re interested in working with a financial adviser, shopping around is the best place to start.
Contact different financial advisers and compare their offerings and rates. It’s also worth speaking with trusted friends and family to see if anyone has a recommendation.
Once you’ve got a handful of advisers in mind, create a shortlist and double-check they’re FCA-regulated using the financial services register.
Financial advice could help you better understand your financial circumstances and how to manage your money as a self-employed person.
If you’d like to speak with someone about your situation, you can book a free, no-obligation chat with one of our advisers. You’ll find out where you stand and what it would cost, with no pressure to go further.
