Most clients engage with a financial planner because they want to achieve specific aims. You might want to discuss how to plan for retirement or what to do with the proceeds from selling your business, for example.
Helping you reach certain milestones in life is part of what we do. However, the value of financial planning extends beyond this.
With our support, you also improve your overall financial wellbeing, helping you live a more comfortable life and reduce stress about your finances.
Here are three key indicators of financial wellbeing you might notice after working with us.
1. You can absorb financial shocks easily
No matter how well you plan your finances, there will always be unexpected costs to manage. For example, a broken-down car, emergency home repairs, or a sudden spike in fuel prices can all put pressure on your budget.
Additionally, you could lose your job or be unable to work for a period, meaning you must pay your living costs with reduced income.
If your monthly outgoings are only just covered by your regular income, and you do not have any additional funds set aside, these financial shocks can quickly leave you in a difficult position.
As part of the financial planning process, we will consider the foundations you have in place for protecting yourself against the unexpected.
For instance, we may recommend that you keep some cash savings as an emergency fund. That way, when unexpected costs arise, you can pay them without disrupting your normal budget or having to borrow on credit cards.
You might rely on your emergency fund to cover your expenses for a while if you lose your job, too.
Protection also offers more long-term stability. Income protection, for instance, offers a regular payment to replace a portion of your earnings if you are unable to work due to illness or injury. This means that a period out of work does not land you in financial trouble or disrupt your long-term plans.
Once you have these foundations in place, you can deal with financial shocks without concern.
2. You enjoy spending money
Spending money can be a source of anxiety. You might worry that if your spending gets out of control, you will face money worries or struggle to save enough for the future.
Often, this concern comes from not having a clear plan in place.
When you work with us, we will use cashflow planning software to analyse information about your current financial situation and how much you are contributing to savings and investments.
Using this, we can build a picture of what your finances will look like in the future. We can even change variables to see how a change to your spending now might impact your prospects for retirement.
The benefit of these forecasts is that we can demonstrate that you are able to spend now while also securing your future, allowing you to find the right balance between short- and long-term needs.
As such, spending money is no longer something you worry about; instead, it is a carefully considered part of your financial plan.
3. Your wealth is no longer a source of stress
Financial issues are one of the most prominent causes of stress in the UK. According to research published by International Adviser, 62% of those surveyed said they were concerned about their finances. Additionally, 79% of those with financial worries said it impacted their mental wellbeing.
As the cost of living rises and geopolitical events continue to put pressure on the UK economy, it is unsurprising that many people are worried about their financial situation. However, it is also very telling that only 6% of those surveyed had consulted a professional financial planner.
This lack of planning could be a significant contributor to financial stress, and the data supports this.
A separate study from Aviva found that 81% of advised men and 71% of advised women agreed that they are better off than they would be without advice. Additionally, 82% of men and 78% of women in this group said that financial advice contributes to their overall wellbeing.
This demonstrates that working with a professional and creating a plan means your finances are no longer a source of stress. Instead, you can be confident that your needs are taken care of now and in the future.
Get in touch
To learn more about the wider benefits of working with us, please do get in touch with us at DBL Asset Management.
Email enquiries@dbl-am.com or call 01625 529499 to speak to us today.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
The Financial Conduct Authority does not regulate cashflow planning.
The value of your investments can go down as well as up, so you could get back less than you invested.
Note that financial protection plans typically have no cash-in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.