When do you do your money thinking?

17 March 2022

The end of the tax year is nearly upon us and for a good few, this will bring into focus their money planning as they undertake their annual 'spring clean' of investments, such as ISAs and pensions, along with any other allowances that might be available and affordable.

This year's spring statement (mini budget) on 23 March will also highlight changes that might be ahead, with some previous announcements coming into force this April, such as the hike in National Insurance costs, and the fixed personal allowances from two years ago. It's not likely to be a pretty speech.

With this twice-yearly focus on money and financial changes nearly upon us, when do you achieve your money planning? Now we appreciate that some people keep a regular (sometimes daily) watch on their investments and cash at bank. Perhaps overkill, but keeping a weather eye on what's where, the comings in and goings out, is usually worthwhile. Indeed, more than ever with the home energy costs for most about to jump with the reset of the energy cap at the end of March 2022. This happens every six months, so don't forget that this will happen again in October 2022.

Do you look every week or month, or every quarter, perhaps at a set time to meet your preferences? Some prefer a six-monthly review of their cash, and others once a year. I appreciate there are many others who just let it roll and never check. Checking all things financial is a good exercise and if nothing else will at least remind you of where you're up to, to at least plan the costs of a future purchase, such as a car or holiday.

What to check? This is where setting a routine might help, by preparing a list of balances and values that you can refer to. Just a regular snapshot of the health of your wealth. This might be a pension and bank statement. A payslip and P60. A savings account and an ISA. Your financial situation is unique, and you'll know what you need to add to your list.

The checking process might reveal surpluses or negatives which can be used or checked to ensure that they are all in order. It might also be worth sharing this list with a partner or spouse to make sure you both know where the money is, and what it's worth.

However you plan and monitor your money, do try to have a routine to keep it under review. I am not suggesting that you become a forensic accountant overnight, but a healthy interest in your wealth is never a bad thing.

If you need help bringing together the values of your pension funds or investment arrangements, then speak to the team at Chapters Financial. We are not normally advocates of having all your eggs in one basket but having a spread of holdings with one adviser that can access all fund values promptly can work well.

No individual advice is contained within this blog.

Keith Churchouse FPFS
CFP Chartered FCSI
Chartered Financial Planner

Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899

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