In this article, we will stick to the tax allowances that most investors can take advantage of. It is worth noting that there are other allowances for the more sophisticated investor. However, where appropriate, they would be raised with you personally during our review meetings.

Now most people can solve all their investing requirements in a nice and tax-efficient manner with a pension and an ISA. As such, let’s start with an old favourite, pensions. Everyone loves their pension, right? Regardless, your pension contributions should be a key consideration at the end of each tax year.

According to the FCA in May 2022, 1 in 4 (24%) of all UK adults had low financial resilience. These are people who are in financial difficulty, or who could quickly find themselves in difficulty if they suffer a financial shock, because, for example, they have little to no savings or are heavily burdened by their domestic bills or credit commitments.

None of us know what the future holds or what set backs await us in the future, but we can prepare as best we can. The first step is an emergency fund. This is cash savings in the bank that you can get your hands on immediately. No need to cash in investments, use a credit card or go cap-in-hand to the bank for a loan. If you do not have the equivalent of at least three months of your essential outgoings in cash, you ought to start addressing this. We have all been there, but you need to start somewhere.

If I asked you how much of your income you spend on mortgage debt, unsecured debt, savings, clothes, hobbies etc. Could you answer? Knowing your cash flow is probably the most important element of your financial life. Most people trust the bank to tell know what size of a mortgage is affordable, their employer’s pension scheme to tell them how much they need to save for their retirement. Sorry, but ultimately, these are your responsibility to get right. Don’t leave it to chance.

You cannot simply hope your spending is in line with your hopes and dreams for the future. You need to dig in do the work and make a plan.

We are all aspirational, we want a beautiful house, a great car, the best clothes, but alas, most of us can’t have it all. No amount of financial planning can solve the issue of expenditure exceeding income. Unless you are fortunate enough to have a great income to cover these expenses, you need to prioritise, budget and delay gratification. If you can, invest. Invest to pay for these nice things in the future and invest in yourself to grow your income.

Below is a version of many conversations I have with clients:

Client: “I want to retire at 50” or “I want to buy a new home in two years”.

Me: “How do you plan to do it?”

Client: “I save whatever is left at the end of the month” or “I’m saving some money towards it”

This is not a plan and it is not how to achieve goals. You need to know the amount you are saving, the risks you are taking, and that you can achieve your target in the time allotted. You probably have a few goals to juggle and prioritise. Some may be fungible, some not so much. This is why financial planning is so important. No two clients have the same goals or priorities. Personal finance is more personal than finance.

Get a Financial Planner. If a Financial Planner is too expensive or you don’t see the value, make your own plan. Any plan is better than none. You can always adjust it as you go. Find out the cost of reaching each goal, if it is affordable get it sorted. If not, establish a budget and prioritise.

Life is not fair. If you have not learnt that by now, unfortunately you probably will. Bad things happen to all people, whether we think them good or bad. Ensure that you understand what protection you can put in place to protect you, the ones you love and your future together. Find out the cost of protecting each eventuality, if it is affordable get it sorted. If not, establish a budget and prioritise.