Life changes — and your financial goals should change with it.
The financial goals you set a few years ago may have made perfect sense at the time. But since then, you may have changed jobs, started a family, bought a property, taken on new financial commitments, or simply changed what you want from life.
That’s why it’s worth taking the time to regularly review your financial goals and make sure your money is still working towards the future you want.
Start by looking at your goals
A simple way to review your finances is to think about your goals in terms of what you want to achieve, how much it will cost and when you’ll need the money.
Your goals might include:
- Short-term goals — building an emergency fund, paying for a holiday or covering an upcoming expense.
- Medium-term goals — paying down debt, renovating your home or saving for a major purchase.
- Long-term goals — building wealth, becoming financially independent or preparing for retirement.
Having a clear idea of what you’re working towards makes it easier to determine whether your current financial arrangements are helping you get there.
Are your investments still right for you?
Your investment strategy should generally take into account three important factors:
Your goals, your timeframe and your tolerance for risk.
These factors can change over time.
For example, someone who is many years away from needing their investment funds may be more comfortable with market ups and downs. On the other hand, someone approaching retirement or saving for a property purchase may have less time to recover from a significant fall in investment values.
Changes to your income, employment, family circumstances or financial commitments can also affect how much investment risk is appropriate for you.
This doesn’t necessarily mean you need to make major changes to your investments. It simply means it’s worth checking that your strategy still matches your circumstances.
Don’t forget about retirement
Retirement planning is another area where your goals can change over time.
Perhaps you once imagined travelling extensively during retirement. Maybe you now want to spend more time with family, downsize your home, work part-time or help your children financially.
Your expected retirement lifestyle can have a significant impact on how much money you may need and where your retirement income will come from.
Reviewing your retirement plans regularly can help you identify whether you’re still on track — or whether there are adjustments you could make now to improve your position later.
A review doesn’t have to mean a major change
Reviewing your finances doesn’t necessarily mean changing everything.
Sometimes the most valuable outcome is simply confirming that you’re on the right track.
In other cases, a review may highlight a small adjustment that could make a meaningful difference over time.
The important thing is not to wait until your circumstances have changed dramatically. Taking some time to compare where you are today with where you want to be in the future can help you make more informed financial decisions.
Is it time to review your financial goals?
Your financial circumstances and goals won’t stay the same forever. A regular review can help ensure your financial strategy continues to keep pace with your life.
The team at Dymond Foulds & Vaughan can help you review your current position, understand your options and plan for the future with greater confidence.
If your financial goals have changed — or you’re simply not sure whether your current strategy is still working for you — get in touch with Dymond Foulds & Vaughan today to arrange a conversation about your financial future.