This week from November 24th, the Institute of Financial Planning (IFP) is organising Financial Planning Week – a consumer awareness campaign aimed at helping everyone take some simple steps to improve their financial situation. Financial Planning Week is about helping consumers make a difference to their lives. Millions of people face financial disaster every year because they fail to plan their finances. Financial planning is something we all should be doing regardless of our current financial position. It involves working out what your goals are and then adding timescales and costs so you can get to where you want to be.

It seems we do plan aspects of our finance though. A survey conducted this month by YouGov of over 2000 adults across Britain, found that 38% of people have worked out what they have to spend for Christmas. However when it comes to planning our life finances, it seems only 4% have a comprehensive plan in place with goals, costs and timescales identified.

This is despite the fact that we seem to be worrying about money, as 82% of respondents indicated that they worry about money, some, most or all of the time.

A comprehensive financial plan really can help give peace of mind and put clarity and conviction behind your financial goals. Providing this support is a key aspect of every financial plan we create for our clients at Proposito. In fact one of our long-standing clients described us as being ‘like a big mug of Horlicks, safe and reassuring’.

However, many people believe that financial planning is for the wealthy, and simply choose to do nothing. Seeking the advice of a qualified professional does help provide the best outcome, but if that is not possible, then there are some plenty of simple steps that people can take to help achieve a better outcome for their future. That is what Financial Planning Week is all about – helping consumers make a difference to their lives!

Whether it be ensuring you have an up-to-date will, creating a fund for emergencies, setting a budget or ensuring you have adequate life cover, every step makes a difference.

Sadly though, many people don’t take even the simplest of steps, as the following results from the survey show:

• 44% have savings for emergencies and other goals
• Only 26% have an up-to-date Will
• Only 25% have life insurance to protect their dependants in case of premature death.
• 14% have savings for retirement but not sure it’s enough to provide the income they will need in retirement
• Only 11% are confident they have enough savings to provide them with the income they’ll need in retirement
• 9% have savings for retirement but know it’s definitely not enough to provide the income they’ll need in retirement

All the areas above are items that are discussed and addressed in a financial plan with goals and actions to help you get to where you want to be. Whether created by a professional or by you, the end result should be the same – reaching your financial goal.

It all boils down to the fact that you need a plan and so I’ll leave you with this thought from French writer – Antoine de Saint-Exupéry,

‘A goal without a plan is just a wish’