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5 Top Financial Planning Tips – Contractors And Business Owners


Contracting and running a business can bring a level of uncertainty both in terms of where the next work is coming from as well as financially rewarding. Trying to manage this can be tricky and likely causing you a certain level of stress.

 

You might be asking yourself certain questions such as: –

• Am I building up enough of a reserve for those leaner times?

• How do I save for my long-term future without compromising on my short-term needs?

• What do I do if I can’t work for a period of time due to illness?

• How do I extract more profit from my business?

 

We appreciate that everyone is different, which is why we take the time to listen to your needs and personal concerns and ultimately help you to be more intentional with your finances. Whether you need to start your wealth building journey, protect your family in case the worst should happen or need some advice on your retirement planning we are there for you.

 

So what are the top things we consider when engaging in the financial planning process?

1. Emergency Fund. This is extremely important. Even if that fund just covers the simplest of contingencies you should try to make sure you have built up a sufficient pot to fall back on in times of short-term unforeseen expenditure needs.

 

2. With the best will in the world plans can be disturbed by external forces. It’s no good having a plan to build your wealth and be in a position to access this when you reach your ideal time for financial independence for the worst to then happen, or you have an unfortunate health issue, which impedes your ability to fulfil your goals. You need to make sure you are adequately protected, otherwise the whole plan could crumble.

 

3. Pay yourself first. Whilst budgeting can be important for those that need to concentrate on repaying bad debts such as credit card balances or personal loans because it adds a structure and accountability to where your money goes it can be tricky (and lets be honest – boring) to stick to. Instead, we encourage you to be intentional with your financial planning and apportion your finances towards your dreams first and live on what’s left. We can map out your plans with you so you can understand and see for yourself how these wealth building methods translate in real terms for your future.

 

4. Consider what’s important to you in life. What does money mean to you? If you only had 12 months to live, what would you do with your life?

 

5. Start now. The compound effect of growth over a long period of time can be staggering and make such a difference to you and your family’s life. The sooner you start your journey the sooner you will reach financial independence.

 

Number 4 can be a difficult question and the answer may develop over time. The important point is to start thinking about it now and put a plan in place for you and your family. If the plan changes then that’s great. At least you are being intentional with your money and your life.

Take Action
Speak to our financial planning department today to start your journey to financial independence on 01270 250800 or email us.