September is here, which means it is the start of a new rugby season.
Understandably, your primary focus between now and May (or even June if your season goes well) will be on events on the training ground and the pitch.
As a result, now may be the ideal time to go through some simple steps to check your finances are in good shape.
The six quick suggestions here will hopefully give you the satisfaction and reassurance that your finances are in order, leaving you to focus on rugby-related issues for the next nine months.
1. Make sure you have a comprehensive budget
If you do not have a budget laying out your income and expenditure, now is the time to set one up.
While you will find online apps designed to do this, a simple spreadsheet can do the job just as effectively, with the advantage that you can edit it to suit your own purposes and specific financial situation.
A sensible place to start is by using a recent bank statement to list all your regular monthly expenses. This will give you an immediate idea of your fixed outgoings.
You can then use the same statements to understand your monthly discretionary spending. It can help to separate this under different headings, such as:
- Food shopping
- Domestic spending, such as clothes and household items
- Entertainment and eating out.
Having all this information easily to hand will give you an instant view of your outgoings, and help you keep control of your spending.
If you already have a schedule set up, now is the ideal time to check all the details are up to date and to make any necessary changes.
2. Review your pensions, investments, and savings
With your budget spreadsheet set up, a good next step is to understand your financial assets, such as your pension and any other savings and investments you may have.
Most of this information will be accessible online, so it should be relatively straightforward to check current values.
At the same time, you will then be able to see if you are saving enough each month, and whether there is scope to increase the amount you set aside.
For example, your budget may reveal direct debit mandates that you could cancel, and then divert the amount to savings.
Including all this information in your budget will mean you have everything in one place.
3. Make sure you are prepared for financial emergencies
A key part of playing rugby is about how you cope with unexpected events or emergencies during a match. How your team responds to being reduced to 14 players for 10 minutes or even the rest of the match, for example, can be the difference between success and failure.
The same can apply to your finances, and one important step you may want to take is ensuring you have an emergency fund set aside.
Such a fund is designed to help you deal with unforeseen events, such as a broken boiler or car repairs, without you having to borrow money or draw from your long-term savings and investments.
It can also help you stay financially secure in the event of any changes to your employment situation. The sad and unexpected demise of Jersey Reds, London Irish, and Wasps in the last few years highlights the precarious nature of playing professional sport, and illustrates the value of having an emergency fund you can draw on at any time.
So, it is worth spending time checking that you have adequate funds set aside for a rainy day and making plans to build such a fund if you do not currently have one.
A general rule of thumb is to have an emergency fund of between three and six months of living expenses in an instant access account.
4. If you have debts, put plans in place to reduce the amount you owe
Having too much debt can not only be costly from a financial perspective but can also create stress and worry at a time when you will want to be totally focused on what happens on the pitch each weekend.
So, it is prudent to know how much you owe, and how much it is costing you each month to service. It can then be sensible to put a plan together to reduce it.
Start with the debt incurring the highest interest and tackle your outstanding liabilities one by one, redirecting the repayments to others as debts are cleared.
You could also consider consolidating any remaining debts onto a potentially lower rate with a single loan. This makes it easier to manage and can prevent your debt problems from spiralling out of control.
Once your debt is clear, you will have more disposable income each month, so you could almost see clearing your debt as giving yourself a pay rise!
5. If you are on a fixed-rate mortgage, check to see when this ends
If you have a mortgage, it may well be a fixed-rate arrangement that will come to an end at some stage during the coming season.
Rather than putting off sorting it out until closer to the time, it is never too soon to start planning ahead when it comes to finding a new deal.
We would strongly recommend you speak to a mortgage professional about this. Let them know when your existing deal comes to an end so you can get them to scour the market and find an appropriate deal for you.
For one thing, it makes sense to delegate the responsibility and give yourself one less thing to worry about during the season. For another, they can provide you with sound mortgage advice, and may have access to deals that are not usually available directly to consumers.
6. Consider your future plans and aspirations
A more general point is for you to take some time to review your future plans and consider how they could affect your finances.
For example, you may have recently joined a new club and are thinking of buying a property near to where they play, rather than simply renting somewhere to live. Additionally, the move may have resulted in a higher salary, and you might be considering how this could affect your financial situation.
Further ahead, you might be planning to spend some time playing abroad, in France or Japan for example, and so may want to consider how that could affect your finances.
Then there are other personal events, such as marriage or even a big holiday after the end of the season.
In each instance, having even just outline plans in place, and knowing what your key action points are, can help keep you in control. This can give you the confidence that comes from knowing you are planning ahead.
That reassurance will be accentuated if you have an expert working for you, rather than simply trying to do all the work yourself.
Get in touch
Taking all these steps can provide you with valuable peace of mind and allow you to focus on what is really important between now and next spring, which is success on the pitch!
If you would like to talk about your own financial plans, then please do get in touch with us at DBL Asset Management.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
