The Romans dedicated January to their god Janus – god of Endings, Transitions, and new Beginnings. He is depicted with two faces since he looks back to learn from the past and the year that has just ended (Endings) and, having taken stock (Transitions), he looks forward to the next year (new Beginnings). We would do well to take a leaf out of his book!
With the new year comes new possibilities, and most of us like to put a resolution in place. While you might not stick to your January gym membership or finally get that novel written, committing yourself to a financial resolution is an excellent way to start 2019. Even with the best intentions, however, it can be tough to stick with resolutions long enough to see them bear fruit. But, happily, with your financial planning, there are a few steps you can take to give yourself the best chance of success – and of witnessing your success as it happens!
1. Endings: Like Janus, first look back … Look before you leap!
Review your spending in 2018, collect your bank statements, bills and receipts and look out for areas that were difficult. Once you’ve identified any challenges, they’ll be much easier to avoid in the year ahead.
2. Transitions: Like Janus, then take stock … Amend and Update!
With a good grasp of how the past year has been for your financial planning, you’ll have an understanding of where you are now. Has anything changed in your personal, financial, or work circumstances? If so, what will be the impact going forward? There may be actions you can take immediately to better your situation. For example, review any subscriptions or direct debits that you now deem unnecessary. Updating your financial situation at the start of the year will give you greater control over the coming months.
3. Beginnings: Like Janus, now look forward … Armed with an Updated Plan!
With a sound understanding of your recent financial planning situation and your current position, set yourself an achievable plan for the year ahead. We are talking budgeting. Be specific and make your budget measurable by making it visible – a fundamental step towards success in the coming year and beyond.
A well-constructed budget is just the thing to keep you (and your resolutions!) on track. Gather and record information about your income and outgoings and monitor and record your spending and saving. Keep your records up to date. Most importantly, regularly review your financial planning, including your budget, as you progress through the year ahead.
Remember, we are here to help so please do not hesitate to contact us regarding your financial planning situation – Reviews are part of our added-value services for our clients.
We have set out above what is only a brief summary of some key points that involve quite complex considerations. Allowances, caps, levels and bases of, and reliefs from, taxation are subject to change and their value to you will depend upon your personal circumstances. Information and data may change after the date of their original promulgation in our Newsletter or this Focus article. Always seek relevant professional advice before taking, or refraining from taking, any action.
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