Retirement Financial Planning: Make the Most of Your Money

Retirement Financial Planning

At DB Financial Planning and Preservation, we understand the importance of living life the way you want to. However, we also understand the importance of planning for retirement and taking the necessary measures, which is why we try to combine the two so you can achieve the life you’ve dreamed of and retire earlier than you originally thought.

So, outside of our Work-Optional Lifestyle Financial Plan™️ what can you do to help? Is there anything you can be doing yourself to work towards your goals? The answer is yes, there is, and you’ve probably already heard all about it – Budgeting.

As simple as it seems, many people struggle with budgeting and find it challenging to keep track of finances. This is understandable given the number of outgoings and direct debits most people have nowadays – food, fuel, mortgages, bills, television subscription services and gym memberships to name just a few. So, if this sounds familiar, or if you are new to budgeting entirely, take a look below. We have compiled a list of top tips that should help you keep on top of your finances.

Zero-Based Budgeting

Zero-Based Budgeting is the most popular method of budgeting and is relatively self-explanatory. It is the idea that your income, minus all your outgoings, should equal zero. You may think this sounds odd, as it leaves nothing to save or invest, but there is no need to be alarmed, as you include any savings or investments as part of your outgoings.

For example, say you earn £2000 a month after tax and national insurance, once you have detracted the value of your bills, investments, and anything you want to save and put to one side, you should be left with zero. Budgeting this way ensures that every penny has a name to it, so you will get the most out of your money.

Separate Bills Accounts

Keeping your monthly bills separate from your every day spending account is an easy way to make sure you keep on top of your monthly costs. The direct debits don’t get swallowed up in your day to day transactions.

We recommend you have one account for monthly bills like utilities, Sky, Netflix, life assurance, mortgage, investments, Council tax etc. Then you can also set up another account for those bills that are paid yearly like house insurance, car insurance, car tax, vehicle servicing etc and that way those larger amounts can build up and be ready when they are due.

Trim the Budget

If you are looking to save or invest more, or your income has decreased, do not be afraid to trim the budget. Often, many people do not realise that they have monthly costs that they can cut back on. Whether it’s reducing the number of times you eat out or order takeaways, shopping in a more affordable supermarket, or even cancelling an inessential direct debit, there is usually something that can be done. If you’d like assistance with this and need further financial advice, call us today.

Be Content

Comparison will rob you of both your happiness and your paycheck, so we urge you to be content with what you have. This doesn’t mean give up on your goals and ambitions, but simply be accepting and content with how life is at the moment, whilst working towards your future aspirations of achieving a work-optional lifestyle.

For more information on retirement financial planning and any other related query like pensions tax, or if you’d like to make an enquiry about our Work-Optional Lifestyle Financial Plan™️, click ‘Get Started’.

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