Your post-Budget financial checklist
The Budget often puts personal finances firmly in the spotlight, from pensions and savings to investments and tax.
However, a Budget announcement doesn’t necessarily mean you need to change your financial plans. Before taking action, it can be useful to review your finances as a whole and consider whether your existing plans still support your goals.
If you’re unsure whether a Budget change affects you, a financial adviser can help you understand what it could mean for your individual circumstances before you make a decision.
Here are five areas worth checking.
1. Have your financial goals changed?
Your financial plan should reflect what you want to achieve, whether that’s building your savings, buying a home, helping your family or preparing for retirement.
Take some time to consider whether your priorities have changed and whether your current approach still supports your short, medium and long-term goals.
Even if nothing has changed personally, regularly reviewing your plans can help you stay focused on what matters to you.
2. Do your savings still meet your needs?
Having accessible savings can provide a valuable financial safety net and help you prepare for planned expenses.
Consider how much you currently hold in cash, whether you have enough set aside for unexpected costs and whether your savings still suit what you need the money for.
It can also be worth thinking about the purpose of different savings. Money you may need in the short term is likely to have different requirements from money intended for longer-term goals.
3. Do your investments still match your goals and attitude to risk?
Periods of economic or political change can create uncertainty and generate plenty of headlines. However, reacting to short-term events can distract from the reasons you invested in the first place.
Instead, consider whether your investment strategy continues to reflect your goals, timeframe and attitude to risk.
Investing is generally for the longer term, and investments can fall as well as rise in value. Spreading your money across different types of investments can help reduce the impact of changes in any one area, although it cannot remove investment risk altogether.
4. Are your retirement plans still on track?
Whether retirement is years away or getting closer, it’s worth regularly reviewing how your plans are progressing.
Consider what you’re currently contributing to your pension, how much income you might need to support the lifestyle you want in retirement, and when you hope to retire. If your circumstances or goals have changed, your retirement plans may need to change with them.
A Budget announcement may affect pensions or retirement planning, but whether you need to take action will depend on your individual circumstances.
5. Has anything else changed that could affect your financial plans?
Your finances aren’t just about savings, investments and pensions. It’s also worth considering how you or your family would cope financially if your circumstances changed, as well as what you’d like to happen to your money and other assets in the future.
Major events such as getting married, starting a family, changing jobs or approaching retirement can all be good reasons to revisit your arrangements.
Looking at your finances as a whole can help you understand how the different pieces fit together and identify areas that might need attention.
Keep focused on your long-term plans
The Budget may generate new headlines and plenty of discussion, but your financial decisions should ultimately reflect your own circumstances, goals and longer-term plans.
Rather than making changes in response to individual announcements, consider whether it’s a good time to review your overall position. If you’re unsure about what any changes could mean for you, speaking to a financial adviser can help you understand your options before making financial decisions.
With investing, your capital is at risk. Investments can fluctuate in value and you may get back less than you invest. This material is for general information only and does not constitute a personal recommendation or financial advice. The investments referred to may not be suitable for all investors.
It’s important to remember tax is subject to an individual’s personal circumstances and tax rules can change at any time.
True Potential Wealth Management is authorised and regulated by the Financial Conduct Authority. FRN 529810. Registered in England and Wales as a Limited Liability Partnership No. OC356611.
True Potential Investments LLP is authorised and regulated by the Financial Conduct Authority. FRN 527444. Registered in England and Wales as a Limited Liability Partnership No. OC356027.
True Potential LLP is registered in England and Wales as a Limited Liability Partnership No. OC380771.
