The UK is experiencing cool, gloomy, and occasionally rainy weather again. It appears summer has packed its bags and left us for another year , so for us mere mortals September marks the return to reality. It’s no secret that the summer months can be heavy on your waistline and your finances, so when September arrives we are often faced with the harsh truth of the toll it has taken on our bank accounts. The most valuable present you can give yourself is financial peace of mind, so let’s take some time to sit down and consolidate your finances before the Christmas holidays sneak up on you again!

Whether you are starting to consider financial planning or consolidating your current plan, right now is the ideal time to start making important financial decisions that you have been putting off, because you will never have this long to grow your money. Nobody wants to miss out on the chance to save money, make wise investments, remove stress and achieve lifelong goals. If you want to learn more about the impact and value of compounding over a long period of time, read our article: Mathematically, NOW is always the best time to start a Financial Plan.

Review your accounts

Spending some time examining your present account status, ie. ins, outs and overall expenditure, is a great first step. This can seem overwhelming at first, but taking control of your spending can help you set priorities and properly allocate funds to areas that will help you achieve your short-term needs and long-term goals.

Ideally, your monthly net income is higher than your monthly expenses, giving you the opportunity to use the excess to save and invest. Many people, including myself in my latest book Plan for Happy,  advocate and utilise Elizabeth Warren’s 50/30/20 budget rule. Simply spend 50% of your income after tax spent on needs, 30% on wants and 20% on savings and investments.

If this doesn’t work for you, you may want to reduce your non-essential spending until your budget is in balance. (How many streaming services do you really need at once?)

While each person’s precise plan of action will vary, the best way to ensure your financial plan incorporates all your needs, wants and goals for the future is to speak with a financial planner and adviser. The benefits of seeking professional advice is not just limited to having someone plan your finances; an adviser remains by your side, guiding you through the ups and downs, both financially and personally, on your journey to financial peace of mind and future success for you and your family. Read our article: The benefits of having a financial adviser, for more information.

Setting goals

All plans need to have an end point in mind or an underlying purpose. Asking critical and difficult questions during this period of consolidation is crucial. Where do you want to be, both personally and financially, this year, and then in 5, 10, 25 years’ time? How do you want to live your life? What are your non-negotiables? Where can you make compromises?

In the vast majority of cases getting debt free is a primary contributor to financial peace. Knowing that you have a robust plan in place to achieve that will improve your journey, or possibly accelerate it.

Investing in a pension to fund your retirement may seem like a huge impossible task, until you break it down into smaller, manageable steps. But will that extra small monthly contribution now make any difference? Nearly always “Yes” and much more of an impact than you might think.

Setting key goals guides your behaviour over the journey. Dividing these goals into manageable steps will help you to stay focused. Setting milestones or benchmarks that you can meet along the way will solidify your resolve and keep you on the path to your vision of later life..

Check your credit reports

It is always good practice to start examining your credit report if you haven’t already made it a habit. Your credit report plays a critical role in ensuring that your financial foundation is sound as we approach the later months of the year. A credit report is a comprehensive summary of your credit history that includes details on your credit accounts, payment history, and any publicly available information, such as bankruptcies. Lenders, renters, and even employers evaluate your creditworthiness using this report. But because your credit report is so important, any mistakes or out-of-date information on it might have negative effects.

If you would like the help of a professional to get your finances back on track or you just want to have a chat about any of the points raised in this article, please get in touch by booking a 15 minute call free of charge with one of our professional advisers.

Many of the ideas and suggestions raised in this article are explored in more detail in my latest book, Plan for Happy – a step-by-step guide to growing your money. You can purchase your copy on Amazon today for just £12.99, or drop me a note and I will send you one on me!

Adam Walkom