Lucy Young, Financial Planner at Independent Women

In today's world, women are increasingly taking charge of their financial destinies and harnessing their financial power. With a well-structured personal financial plan, you can transform your financial dreams into reality.

Independent Women is running a series of webinars with Women in Property, to help you feel empowered when it comes to your finances, taking a look at money through a female lens and understanding the unique challenges faced by women managing their finances.

By defining your goals and setting clear objectives a financial plan will give you confidence that you are on track and, if the unexpected were to happen, you are prepared.

The Power of a Personal Financial Plan

Start with a Clear Vision

The first step in growing your wealth is to define your financial goals. What do you want to achieve? Whether it's buying a home, starting a business, or securing a comfortable retirement, having a clear vision gives you direction and purpose and provides a roadmap for your financial journey.

Once your goals are defined, set clear objectives for achieving them. You can break down each goal into actionable steps that you can begin to work through to achieve both your short-term and long-term objectives. Setting objectives makes your goals attainable and keeps you motivated.

Create a Budget

A budget is a fundamental tool for managing your finances. It helps you track your income and expenditure, ensuring that you live within your means while setting aside funds for your goals. Start by listing all your sources of income and then your monthly expenses, focusing on your ‘core’ expenses i.e. household bills and groceries. Don’t forget to also set aside funds for those larger one-off costs such as holidays and home renovations.  

Build an Emergency Fund

An emergency fund acts as a safety net, providing you with financial security in times of need. Unexpected expenses, for example the boiler breaking down, can have significant consequences without an emergency fund in place and can derail your financial plans. Having an appropriately sized fund in place will give you peace of mind and prevent you from dipping into your investments or going into debt during emergencies. However, you should ensure you do not hold too much in cash as inflation means money in the bank can lose ‘real value’ over time.

Invest Wisely

Investing is a powerful way to grow your wealth over time. Investments should be appropriately diversified and should take a level of risk that you personally are comfortable taking.

Protect your Wealth

Insurance is a crucial component of financial planning as it keeps your financial plan on track through thick and thin. The right insurance policies for you and your loved ones can mitigate the financial impact of unexpected events such as illness, accidents or death. You may already have protection through your employer, and it is important to check your existing protection before setting up any policies.

Estate planning is also essential to protect your assets and provide for your loved ones after you're gone. A Will should be written to reflect your up to date wishes and you should appoint an executor capable of carrying out your wishes on your passing. A (Lasting) Power of Attorney should be put in place to ensure that, were you to lose capacity, your appointed person/people can continue to act on your behalf without timely delay and cost.  

Regular Financial Reviews

Your financial plan should be dynamic, evolving as your life circumstances change. Staying proactive ensures that you remain on track to achieving your financial goals.

Conclusion

A well-structured financial plan gives you confidence that you are on track. It can provide peace of mind, reducing stress and anxiety. With a plan in place, you can make informed decisions, knowing that each step brings you closer to your financial dreams.

By growing and protecting your wealth through a personal financial plan, you can turn your aspirations into reality. Define your goals, set clear objectives, and stay prepared for the unexpected. With determination and strategic planning, you can confidently harness your financial power.

Independent Women is a trading name of Forvis Mazars Financial Planning Ltd. The information contained in this article does not constitute individual advice. Forvis Mazars Financial Planning Ltd will not accept any responsibility for decisions taken or not taken on the basis of the information presented. Always obtain independent, professional advice relevant to your own circumstances.

Any reference to legislation and tax is based on Forvis Mazars Financial Planning Ltd’s understanding of United Kingdom law and HM Revenue & Customs practice at the date of production. These may be subject to change in the future. Tax rates and reliefs may be altered. The value of tax reliefs to the investor depends on their financial circumstances. No guarantees are given regarding the effectiveness of any arrangements entered into on the basis of these comments.

Forvis Mazars Financial Planning Limited Forvis Mazars Financial Planning Ltd is registered in England and Wales No 3172233 with its registered office at 30 Old Bailey, London EC4M 7AU. Forvis Mazars Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority. Forvis Mazars Financial Planning Ltd is a wholly owned subsidiary of Forvis Mazars LLP, the UK firm of Forvis Mazars Global, a leading global professional services network.