This is a time when planning for your future is likely to be a distant thought, money may be tight right now because you may have student debts to pay, you might be saving for a deposit on a property, or a new car to get to work. So how can you manage your money effectively to cover your debts, save a deposit, cover a mortgage and plan? These early years can be crucial to your future planning, its never too early to start saving.

Financial health check:

• Are you paying off any student debts efficiently?
• Are you saving sufficiently and are your savings on track to achieve your objectives?
• Do you understand your different mortgage options?
• How much of a deposit do you need for your preferred property and how are you saving for this?
• Is your income properly protected?

When you are young, free and single and earning a good wage, you may not be so concerned about financial planning and money may not cause you worry. Having a family puts finances into perspective though as you want to provide security and give your children the best possible start in life.

Financial health check:

• As your family grows, you need more room. How much can you afford if you are thinking of moving to a bigger house?
• Is your family’s income protected if you must take time off work due to serious illness or an accident? Would they be provided for if you die?
• Are you saving regularly to fund things such as your children’s education?

As your children grow up, move out and become financially independent, you have more disposable income. Whilst it would be good to start enjoying some of the money, you also want to plan your future finances to maintain security and a standard of living.

Financial health check:

• Are you planning to invest your extra disposable income? If so, where, and have you taken some advice on this?
• With the children off your hands, perhaps you are looking to move to a different size house, or invest in a property abroad?
• Have you paid off your mortgage – what is the quickest way to do this?
• Are your pensions doing well for you? Do not leave it until too late to find out.

As you approach retirement, your previous monthly financial commitments should be dwindling – no mortgage costs, no education fees for your children, no more pension contributions. Your monthly salary will also disappear however, so now is the time to ensure the wealth you have accumulated throughout your career is maximised and will provide you with a comfortable retirement.

Financial health check:

• If you have substantial savings or have inherited money, what should you do with it? Invest it, or pay off your mortgage?
• How will your pension be affected if you retire in one year, two years or five years?
• Have you changed the way you invest your pension in the last five years? The attitude you previously had towards risk may not be the same now.
• Can you afford to retire early or will you phase into retirement?
• Have you checked your State Pension entitlement?
• When you retire, have you considered whether you require a fixed or variable income?

Once retired or for some semi-retired, if you have a sound financial plan, now is the time to fulfil the goals you set yourself. This may be staying active, travelling to new found places or simply just spending time with your loved ones. You may even find yourself in a position to be able to help your family with their own financial commitments and mortgages.

Financial health check:

• Does your income meet your expenditure, do you need to generate income from your savings?
• Are you drawing down on a pension fund, if so, are your funds invested correctly and are you achieving the best results?
• If you have accumulated savings or have inherited money, what should you do with it?
• If in a fortunate financial position, are you starting to think about passing money to your family?

With greater life expectancy due to improved living standards and breakthroughs in medical science, it’s never been so important to plan for your later life. It is crucial that your finances are monitored regularly to ensure you have the hard earned funds available to enjoy your retirement. This may also be a time when you want to ensure you have enough for potential care costs whilst also considering ways of passing your wealth to your loved ones.

Financial health check:

• Have you considered the cost of long term care?
• Have you given thought to inheritance tax planning?
• Are you aware of the various allowances for gifting?