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.

Understanding Your Blind Spots

Even the most meticulous individual can overlook certain financial blind spots that can have significant consequences. In this blog post, we'll explore some common blind spots when it comes to financial planning, including the importance of knowing your numbers, having a critical friend as well as considering common "what ifs," and avoiding common succession planning mistakes.

One of the most fundamental aspects of financial planning is knowing your numbers. This means having a clear understanding of your income, expenditure, assets, and liabilities. Without this knowledge, it's impossible to create an accurate and effective financial plan. Many people underestimate their expenses or overestimate their income, leading to unrealistic financial goals and plans. Regularly reviewing and updating your financial information is essential to ensure that your plan remains relevant and achievable.

Another critical element of financial planning is having a ‘critical friend.’ This is someone who can provide an objective perspective on your financial decisions and plans. A ‘critical friend’ can help you identify potential issues or blind spots that you may have overlooked. They can also provide valuable feedback and advice, helping you make more informed and balanced decisions. It's important to choose someone who is knowledgeable about financial matters and who you trust to be honest and objective.

A crucial pitfall in financial planning is the failure to consider "what if" scenarios. Life is unpredictable, and unexpected events can have a significant impact on your financial situation and longer-term financial plan. It's important to consider potential risks and plan for them accordingly. This might include having an emergency fund, and insurance policies in place. By considering these "what if" scenarios, you can create a more resilient and adaptable financial plan.

Succession planning is an aspect of financial planning that many individuals come to consider in later life and it is important to be aware of common mistakes that can be made, including failing to create a will and not considering the tax implications of gifting. It's important to work with a financial planner or tax professional to ensure that your succession planning is in line with your wishes without creating unexpected consequences.

In conclusion, financial planning is a complex and ongoing process that requires careful consideration of various factors. By knowing your numbers, having a critical friend, considering "what if" scenarios, and avoiding common succession planning mistakes, you can create a more effective and resilient financial plan. Regularly reviewing and updating your plan is essential to ensure that it remains relevant and achievable. Remember, the goal of financial planning is to provide you with peace of mind and financial security, so it's worth taking the time to address these common blind spots.

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.