26/11/19Why talking about money is important
November marks Talk Money, Talk Pensions week, an initiative that aims to encourage more people to talk about their finances. In the UK, personal finances can be something of a taboo subject. It is not something we widely discuss but whether it is chatting with your partner or your financial planner, there are a lot of reasons why we should all make an effort to talk about money.
1. Look at your finances from another perspective
As the saying goes, two pairs of eyes are better than one. Keeping money worries or concerns to yourself means you only see solutions from your perspective. Sharing, whether with a loved one or professional, can give you a fresh viewpoint. If you are not sure which way to go or feel as though you are stuck in a rut, chatting about your options can be just what you need to spark some inspiration.
2. Alleviate stress
Money can be one of the biggest causes of stress. Whether you are worried about what would happen if your income were to stop, or whether you will outlive your pension, it can be a cause for concern. Financial stress can affect other parts of life too, including your overall wellbeing. Sharing worries can feel like a weight has been lifted off your shoulders and may lead to a solution that you had not thought of. However, it is important to keep in mind that what has worked for one person, will not necessarily be right for you. Our goal is to provide each client with peace of mind when they think about their finances.
3. Pass on your knowledge
Over the years, you have probably picked up a few tips of your own. Why not share what you have learnt with others? It could help them achieve their goals and improve their financial situation. Whether it is just a gentle reminder to set money aside for a rainy day or insights you have picked up when building up your own investment portfolio, it could be useful. It is also an opportunity to debate different options and maybe pick up something new from others too.
4. Share your experiences with loved ones
The challenges facing younger generations are often featured in the news, including struggles getting on the property ladder, saving for a longer retirement and stagnant wages. Talking about money with children or grandchildren can help you understand the challenges they are facing and how you may be able to help. Sharing your experiences can offer some insight and encourage them to come to you when they are in need of advice.
5. Take the opportunity to consider the long term
When you think of money, it is often short-term factors that we focus on. Perhaps you focus on where your savings are going each paycheque or what you are putting away for grandchildren. Talking about money is an opportunity to start thinking further ahead; what would you like to achieve in ten- or 20-years’ time? It could be becoming mortgage-free as quickly as possible or enjoying the retirement lifestyle you have been looking forward to. By setting out aspirations, you are able to create a plan that enables you to take steps towards them.
6. Receive advice
Even if you are confident with your finances, there are probably times when you could benefit from some professional advice. For some, this will be one-off advice at key milestones, such as retirement. For others, ongoing financial advice that changes to reflect them can be invaluable. Do not be afraid to seek advice when you need it. It is a step that could improve your financial security in the short, medium and long term. If you would like to talk through your money situation, whether you have a particular problem in mind or want a holistic financial plan, we can offer you support. Get in touch with us today to learn more.