What to do if you get out of step
From time to time, events occur that either set us back or give us a major advance financially. Either way, we are out of step with where we should be on our financial journey. We need to recognise this and take appropriate action.
If a major setback occurs, it is important to accept the reality of the position, learn from what has happened and aim to start recovering financial momentum as soon as possible.
This can be difficult as setbacks are often accompanied by considerable emotional trauma. It’s hard to make sound financial decisions at a time when you are feeling highly strung, so we recommend you seek the advice of a financial planning professional to develop your recovery strategy.
Importantly, don’t give up. Even seemingly small things you do now to improve your financial situation can bring real benefits later on. The main thing is to act positively to get your recovery programme under way.
A good way to start the process is to complete the checklist that applies to your age. This will show where your greatest weaknesses are and where you need to apply your efforts.
Remember that the sequence of checklists in this book aims to help you achieve a good degree of financial independence by the time you are 65. If for some reason your finances are not where they should be at your age, it’s just more urgent that the situation be rectified as soon as possible.
On the other hand, perhaps through a stroke of good fortune or your own efforts, you may be very well placed financially. That can bring its own problems.
Firstly, it’s important not to rest on your laurels. We all hope to live a long and happy life. This could involve being retired for quite a long time and require very considerable financial resources.
It’s only natural to want to celebrate if you have good fortune. However, if good fortune comes your way, make sure it brings you some lasting benefits.
Again, completing the checklist that applies to your passage will show you if there are any weaknesses in your present financial position. It’s probably best to fix up these weaknesses first. Our Household Budget can be used to give you a good idea of what the lifestyle you want will cost you.
Then consult a financial planning professional to develop a plan that will ensure the advantage you have at the moment doesn’t get whittled away.