The Seven Steps Of Wealth Coaching - Step 1

Step One – Know Your Goals

Before you can make a plan you need to know what you are planning for. Wealth planning is no different and a wealth coach can help you work out what you want to achieve before you can start. We talked broadly about the seven steps of wealth coaching in our previous blog, and it is important to remember that everyone has different circumstances. You should approach your unique situation as just that: don’t assume that the advice coming from your friends or family about what works for them will work for you. 

What are your goals? Here are some of the things that you will need to consider.

Think about what you need or want to save for

There will be things in life that you will need to save for like retirement. And there will be things that you dream of having that you can also factor into your goals, like a luxury holiday, or a sports car. Maybe you have children that you want to send to private school, or who will have university fees to pay. Perhaps you would like a larger house in a better area, or a holiday home that you can visit. 

Knowing what you are aiming for helps you focus and work out how you can best achieve your goals.

Think about what you will need and when you will need it

It’s very easy to spend what you earn. The more you earn, the more you spend. But it doesn’t have to be this way. If you figure out what you ‘need’ to live comfortably and set any excess aside to put towards your retirement and other savings and investments for your goals, saving quickly becomes a habit. 

A wealth coach can help you plan out your income and expenditure to work out how much you can afford to save to achieve your goals. And retirement may seem a long way off but the earlier you start planning the more options you will have later.

Think about how and when you would like to retire

- When would you ideally like to retire? 

Are you the sort of person who enjoys their job and is hoping to do it for as long as possible, or are you counting down the days? Maybe, like a lot of people, you’re somewhere in the middle and not particularly sure. It is a good idea to take some time to think about what the ideal scenario for your situation would be. 

- What do you plan to do when you are retired?

Will you be kicking off your shoes to settle down in front of the television, or to work on your allotment, or are you planning to travel the world? Do you have hobbies that can be expensive to maintain, like golf or flying, or are yours less financially burdensome, like reading or hiking?

- What are your future lifestyle requirements? 

Do you envisage long, luxury holidays to exotic places, or is a self-catering staycation more your thing? Maybe you like fine dining and throwing regular parties, or perhaps you are more comfortable with country walks and quiet nights in. Will you have golf or leisure club memberships to pay for, or will you be too busy looking after the grandchildren?

The lifestyle you hope to lead may determine when you will be able to retire (and vice versa).

Think about what you hope to leave behind

Times have changed and people are finding it harder to save enough money to get on the property ladder these days. Would you like to leave legacies to your children or grandchildren to help them out, or are they already in a good financial position? Maybe there is a charity or a cause you would like to leave something to. If so, this will need to be factored into your plan.

Work out what is important to you

Once you know what you are aiming for you can start to think about how to turn it into a reality. The next step is understanding what you have now and what you will need in the future. You will need to know your numbers to do this, and we will be covering how you can best approach this in our next blog. 

An expert wealth coach who can give you impartial advice help you on your wealth planning journey. Paula Bicknell Wealth Management can help you make the right decisions to grow your money and live your life well now, secure in the knowledge that you are on the right track to live your life well later. Please get in touch as we would love to help.