Last January, as a new decade dawned, little did we know how the next 12 months would unfold. Now, as another year begins, there are growing shoots of optimism but, whatever the year does bring, a crucial lesson from 2020 is undoubtedly the need to prioritise financial wellbeing in order to ensure we can cope with life’s trials and tribulations.
Key lessons
The coronavirus pandemic has vividly laid bare our fragility and vulnerabilities, and presented immense challenges on many different levels. It’s also reinforced a number of key financial lessons, from the importance of budgeting and building up an emergency savings fund, to investment diversification and holding appropriate life and protection policies.
In short, the pandemic has demonstrated the value of maintaining sound financial planning principles and the peace of mind this delivers. In effect, by getting into good financial habits, it is possible to ensure you are cushioned against the shock when crisis does strike.
Financial wellbeing
Another key takeaway from last year’s experience has been the entwined relationship between financial wellbeing and emotional wellbeing: while a lack of financial stability typically leads to stress and anxiety, sound finances can provide mental peace.
Research conducted by insurer Royal London also highlights the critical role expert advice plays in improving emotional wellbeing by increasing clients’ financial confidence and resilience. According to the study, advised customers who have an ongoing relationship with their adviser were nearly twice as likely to feel in control of their finances as those who didn’t.
Help at hand
The New Year period inevitably provides the perfect opportunity to take stock of your finances and build foundations for a better financial future. And seeking professional advice is a vital step in achieving those objectives. So, get in touch and we’ll help you develop sound plans designed to ensure you hit your short and long-term financial goals and ultimately provide a boost to both your financial and emotional wellbeing.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
