FINANCIAL freedom isn’t something that can be achieved overnight…

It’s a target that you need to work towards over many years, with strategic and careful planning.

But the first step to achieving financial freedom is to decide exactly what it means for you – and this will invariably be personal to you.

Is it being debt-free, mortgage-free and being able to pay unexpected costs without worrying? Or is it more ambitious, with all the above plus being able to enjoy hobbies and pursuits such as regular holidays?

Setting clear goals and deciding what financial freedom looks like to you is important so you can devise a plan that reflects the outcomes you want to see.

Working towards these goals will inevitably mean getting on top and in control of your finances.

It’s crucial that you have a good oversight on how much money you have coming in, your expenses and what you’re saving.

By making sure you have a holistic understanding of your finances, you can create a budget that reflects your income, expenses, and savings targets.

You could also identify areas where you could cut back, so funds can be reallocated to other priorities, such as savings, pensions and paying down debts.

It’s easy to spend a few pounds here and a few pounds there on items we don’t need without really thinking about it.

Take the time to understand your spending habits and how you can cut back on unnecessary impulse purchases.

The next step is to work towards building an emergency fund.

You don’t want your journey to financial freedom to be derailed by sudden and unexpected expenses, such as repairs to your home or replacing expensive household appliances.

It’s therefore well worth setting aside a pot of money exactly for when disasters and unforeseen events strike, so you have a safety net in place in case the worst happens, and don’t have to dip into your all-important savings accounts.

Typically, we suggest having a cash buffer set aside of between three to six months of outgoings.

With the high interest rate climate we face at present, you can get this money working for you and keep inflation curbed.

One of your goals may be to pay off debts.

I suggest that if you have multiple debts to pay off, prioritise those with the highest interest charges, as these will ultimately be more costly in the long run.

Also consider balance transfer cards, but always ensure you make the minimum repayment and have the debt clear or transferred to a new card, before the 0% period ends.

Paying these debts off first can free up more money overall, which again can be diverted towards helping you achieve your longer-term financial goals.

As you start to accumulate and build your wealth, you may consider investing money.

You can invest your money in countless ways, from pensions and Individual Savings Accounts to stocks, shares, and various asset types.

If your money is invested in different ways, you’ll be less exposed to risk, so your wider portfolio will be better placed to withstand any shocks or slumps in the economy or wider markets.

You should also make a point of regularly reviewing and adjusting your investment strategy at least once a year, as your financial goals and circumstances may evolve over time and your portfolio needs to reflect that.

As a professional financial planner, I can work with you to devise a financial strategy, based around your specific needs and aspirations.

By working with a regulated specialist in this field, the pressure of getting on top of your finances is removed, and you can trust them to oversee your financial affairs while you get on with living your life.

That can make a huge difference to you when you’re making big financial decisions and allows you to move forward with a degree of confidence, certainty and assurance that you’re doing the right thing.

If you have any questions about managing your finances and setting yourself up for the future, feel free to contact me or another member of the Future Life Wealth Management team HERE or by ringing 01246 435996.

We’ll always be happy to speak with you.