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Whether hitting your daily step count, buying a coffee or achieving the percentage needed to pass an exam, no matter where you are in life, numbers play a significant role. Some numbers are more important than others, and no I’m not talking about the winning numbers for the lottery!
When it comes to your financial future, focusing on the right numbers can really make a difference. Knowing when you’d like to retire, or how much you need as a deposit for your first house can help guide your long-term savings. Yet in a study done by Sanlam, 14% of UK adults haven’t set any targets for future key financial milestones and three quarters have not set themselves a savings target for their retirement.
It’s never too late or too early to start thinking about your financial future. Knowing you have enough money set aside to live the life you love; whether it’s buying a new car or getting on the property ladder, having your dream wedding or being able to retire comfortably, can help hugely. Using some top tips from the Sanlam’s ‘What’s your Number report’, here are some top tips to help you plan for your financial future.
Determine Long and Short term Goals
Setting goals and targets is an essential part of securing the financial future you want. Ensuring that your goals are realistic and releasing the financial implications of them is also vital. When most people think about their financial milestones, most are for immediate events like buying their first house (36%) or getting their first car (22%).
Once you’re on the property ladder, setting yourself the target of paying off your mortgage is also a good way to ensure your financial future is assured before you retire.
Generally, retirement is lower down the list of priorities. Just 23% of people surveyed by Sanlam said they have set targets for their retirement. Setting yourself a target for retirement enables you to plan for it and gives you the maximum amount of time to generate enough income to be able to afford to retire when you want.
Prepare a budget and stick to It
Budgeting, and planning for family finances, can help massively if you want to save money in the long term. Having a clear understanding of your income and outgoings means you can set aside weekly, or monthly amounts to save and spend.
Once you have a budget for all areas of your life, you know how much money you’ll be able to put towards achieving the long and short-term financial goals you set yourself.
Use Financial Planning Tools
Using tools such as the Sanlam Savings Calculator can help you understand whether you are on track with your savings and whether you will meet your financial goals on time. Inputting how much you feel you can save each month, and your target savings amount gives you an indication of how long it will take for you to reach your target and can act as a guide or motivation.
Seek Financial Advice
Talking to experts about your goals and circumstances can help you look forward with confidence. Working with financial advisors can help you create an investment portfolio or a plan that’s aligned with your needs and circumstances. According to Sanlam, 82% of people who worked with a financial adviser have set targets for their financial future and are working towards them.
Calculate your financial future
If you’ve started thinking about your financial future and want to know more about how you can reach your goals on time, the Sanlam Savings calculator is a great place to start! We can help you look forward with confidence and secure your financial future with minimal stress.