Have Your Priorities Changed?
Whether you like football or not, you are likely to have heard of Manchester United. Probably the most supported and hated British club!
You will possibly have also seen or heard of just how poorly the team performed last season. They finished only sixth with their lowest points score, and now need to change the team dramatically if they want to compete with the top teams.
They spent a lot on players and managers but as the season went on and certain realities struck home, their priorities changed from winning the league to being top four, and then top six. The latter they achieved only because of poor performances of other teams.
It’s all relative
What does Manchester United have to do with finances? Well, nothing, but it does highlight how priorities change from when you first set out a game (or life) plan.
Looking at current life events (and there are so many at the moment), how have the effects of COVID on society, energy and fuel prices, plus general inflation and interest rates changed your priorities?
Have you decided you want to retire now? Or that due to recent stock market falls you now need to delay retirement or change your expectation of income levels?
Priorities are bound to change when we are affected by factors beyond our control.
Sometimes however, we let ourselves be influenced by factors we think are beyond our control. But these can actually be influenced by our actions and desires.
Basic financial planning looks at the various sources and amounts of income needed to meet your expenditure needs and wants. But also considers the type of life you want for yourself and those around you.
Many of my personal clients have come from humble beginnings and are used to a realistic level of expenditure, even though individual wealth would allow for far more spending. Changing the way people live their life can be difficult, but estate values can increase and so can Inheritance Tax liabilities.