The knock-on effects from the lockdown are impacting everyone in different ways financially. As I mentioned in previous articles there are some who aren’t going out as much and therefore find they have more savings, whereas for others unfortunately the story is very different. But no matter what the situation, budgeting is important. Over the years I have always noticed that it is those of my clients who budget and know exactly how much they are spending who have the most to show for it.

Many times when we do an income analysis with clients they are often surprised about how much surplus income they actually have. As the saying goes, “If you don’t know where you are going you might wind up someplace else.”* I think this is true even when it comes to finances. Many people have said to me that I take a lot of risks but I believe that mine are always calculated. One of the first things a bank does when you set up a business is to ask for a business plan, and I believe if you want to know whether you can afford something, or if you’re planning an event you should do the same. The plan should tell you whether something is affordable or not. 

For those who do have financial difficulties the next few months, with Christmas coming, could be harder still and therefore it may be even more important to budget.

As I have mentioned before, we have specialised software we use for cash flow planning and we can help you to plan your future. For example, we can add a stress test to show what would happen if you lost your income, or if your investment rate of return were less than expected, or if there were a stockmarket crash. Clarifying with figures how viable something is can often give us confidence as to whether a goal is obtainable or not and can help to alleviate those sleepless nights. 

At Monetary Solutions we do offer a free without obligation consultation which can be done via video call in the current situation, if you would prefer this method. So why not pick up the phone if you would like to discuss your goals, it may also help you to feel more positive by giving yourself a project and something else to focus on. 

*Yogi Berra

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