Financial planning – Simplifying the complex world of money
At a recent Mole Valley Chamber breakfast networking event, we had the pleasure of hearing from Chris Webb of Corfe Wealth Management. Chris shared some refreshing insights on financial planning that cut through the usual industry jargon and focused on what really matters – you and your goals.
The four pillars of money management
Chris boiled down the essence of money management to four simple actions:
- Earning: This isn’t just about your salary. It includes rental income, dividends, and interest.
- Spending: Chris emphasised that there are different types of spending, from necessities to luxuries.
- Owing: Debt isn’t always bad, especially when it’s controlled, like a mortgage.
- Saving: If there’s anything left after the first three, this is where it goes.
Financial Planning: More than just numbers
What struck me most was Chris’s holistic approach to financial planning. He sees his role as three-fold:
- Life Coach: He starts by understanding where you are now and where you want to be.
- Financial Planner: This is about translating your life goals into financial terms.
- Financial Advisor: Only at the end does he deal with specific financial products.
Practical tips we can all use for financial wellbeing
- The 375 Rule: Want to know how much you need to save for retirement? Multiply your desired monthly income by 375. It’s a quick and dirty calculation, but it gives you a ballpark figure to aim for.
- Understand Your Cash Flow: Chris was shocked that only three people in the room knew exactly what came into and went out of their bank accounts each month. This is a crucial first step in managing your finances.
- Small Changes, Big Impact: Skipping just one pub visit a month and putting that money into savings can make a significant difference over time, thanks to compound interest.
Life goals financial planning – Looking to the future
Chris is passionate about educating young people about money management. He believes that understanding the basics of earning, spending, owing, and saving from an early age can set people up for financial success.
In a world where financial advice often seems designed to confuse, Chris’s approach is a breath of fresh air. By focusing on our goals and breaking down money management into simple, understandable steps, we can all take control of our financial futures.
So, why not start today? Take a look at your bank statements, understand your cash flow, and think about your long-term goals. You might be surprised at what you can achieve with a bit of planning and the right guidance.
Remember, financial planning isn’t about getting rich quick or beating the market. It’s about creating a life that works for you, whether that’s cruising the canals on a barge or simply having peace of mind about your future. And that’s something we can all aspire to.
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