As a parent, constant worrying feels like second nature. Financial planning is a simple way to put your parental pondering at ease. As our #NoSpend challenge draws to a close, our final blog introduces Geraldine and addresses many of the financial fears felt by all parents.
What is your financial goal?
To maintain current life style, and contribute enough to a pension to maintain that long term.
Do you feel this is currently obtainable?
No, I need to increase my pension contribution.
What’s your biggest financial fear?
Not being able to pay the bills at the end of a month.
What do you estimate your weekly ‘bits and bobs’ spend to be?
£20-30
How did you feel completing the challenge?
Nervous that it would reveal ‘secret spending’
What did you learn?
That I enjoy buying things for other people, and online shopping can be addictive!
Do you think you will continue to keep a spending diary?
No, but I will be more mindful, and consider purchases more.
Do you feel you have a better understanding of your finances as a result of completing the challenge?
Not especially, as I didn’t relate it back to the bank account.
Do you feel that, after completing the challenge, your financial goal is now achievable?
I’m not any clearer.
Although Geraldine’s spending diary doesn’t reveal any particularly negative spending habits (she’s quite frugal and avoids silly spends!), it’s clear that she doesn’t really know how to move forward and address her long-term goals and financial fears.
Whilst she didn’t spend excessively, her realisation that online shopping can be addictive would make her a good candidate to embark on one of our financial diets – we’d recommend the 16:8 approach to keep those browsing buys at bay.
For Geraldine’s longer term goals it’s clear that taking some time to focus on the savings she is currently making into her pension and other investments (if any), to establish whether these savings will be sufficient to secure her future financial stability is important. This should also include checking the position in the event of illness or her inability to work. This can only be established by completing a lifelong cashflow forecast, establishing her current income, expenditure and assets – and forecasting her future family objectives and dreams into the plan, to see if they are on track.