Plan to be happier
The concept of Financial Wellbeing has developed over recent years. As a member of the Financial Wellbeing Initiative, I subscribe to the view that this is all about how we use money to increase our happiness.
Yet this subject is about much more than wealth. Recent research by Dr Thomas Mathar on behalf of Aegon, speaking to over 10,000 people about their relationship with money has produced some interesting results. A few of the key points are:
- Financial stress impacts those on all incomes, with one in three ‘top earners’ worrying about money.
- People on higher incomes are more likely to have considered what makes them happy, although overall only a small minority of people were able to identify what brings them joy and happiness in life.
- The ability to save for the future does not solely depend on how much one earns. The ability to clearly picture our ‘future self’ also plays a role. A low earner with a specific vision of their future is likely to save a larger percentage of earnings than a high earner with only a vague image of their future.
- Only 4% of those with a vague picture of their future selves have thought about how to make their financial goals a reality. Compare this with those who do have a picture of future self – with 33% having plans to achieve goals. This indicates that the more definite and specific the image the more likely we are to act.
The truth is that most people have no clear idea where they are heading financially. They may have assets, savings and income but most have no idea what it all means, or what sort of financial future they are going to get.
Financial Planning can help you to understand whether your current and future financial position will allow your goals to be achieved and, if they are not likely to be, what actions you need to take to help make them achievable.
It has been said that ‘a dream is an unplanned ambition’. With the aid of Financial Planning, it is often possible to create a plan the implementation of which will enable the ‘dream’ to be achieved – thus making it a realistic objective.
If you wish to understand how all this relates to your own circumstances, please get in touch and we will be happy to assist.
Barra Gorman FPFS
Chartered Financial Planner
The purpose of this blog is to provide technical and generic guidance and should not be interpreted as a personal recommendation or advice.