In my previous articles I have talked a lot about the importance of having a Financial MOT done; not only is it FREE but it is comprehensive and gives a clear and concise overview of what you need to do, if you so choose, to get you financially from to A to B.

Consider it your sat nav on the highway of your financial life! You know retirement exist and with it, you want to reach it debt free and financially independent, as quickly as possible!  It is evident to see that many in today’s society are still working well past their pension age, and generally not out of pleasure but out of necessity.  The UK state pension pays £95.25 a week for an individual and £152.30 for a couple, but with the UK’s crippling debt the probability of that improving, much less existing for future pensioners is limiting.  A survey carried out some years back gave an impressionable overview of how 100 workers reaching 65 currently stood:

1  – Is wealthy (net worth of £2.6 million or more)

4 – Are financially independent (net worth of £500,000 to £2.5 million)

41 – Are still working

54 – Are DEAD BROKE

Debt freedom and financial independence is for EVERYONE, especially at retirement.  It’s just getting there with the resources you have; and believe me you do have the resources – it’s YOU! What man can conceive, man can achieve! But you first need to ascertain what debt freedom and financial independence means to you. What does it look like and smell like! And this is where a Financial Game Plan comes into play.

Ultimately a Financial Game Plan is a form of financial planning!  Financial planning is crucial in reaching your goals of retiring comfortably, but having said that, what should one look for when having a financial plan done; especially when you have no formal or even ‘informal’ financial education?

Below is a quick guide on the key factors for creating a Financial Game Plan.

1. What Are Your Objectives?

Don’t be afraid to dream – you only live once. Think about the size of the home, education, your family, etc. Pen these thoughts down of how you want your future to look like. Once you have done this, list down your ideals, remembering to factor in mundane issues like your children’s education, insurance, etc.

Your goals should include:

• Education. Regardless of your age, extra education and training are needed either for a career switch or self-improvement. A lot of people are taking college/university courses (even with teenagers) or upgrading to an MBA to climb the corporate ladder. Even if college/university is out for you, you still have to plan for your children’s university education, unless you intend to leave them to their own devices.

• Career. What field do you desire to work in? Is it a creative job or a typical 9-5? Or do you want to be your own boss? Do you want to create multiple streams of passive income?

• Lifestyle. Is work or family more important? Are you contended with “simpler living?” Do you desire a Porsche or BMW? Do you want to live in a mansion, a seafront house, etc? Do you have expensive hobbies like golf? These all cost money so tabulating the expenses and matching it to your income is necessary to achieve your lifestyle goals.

• Retirement. Don’t forget about retirement. It is the moment when you lose your income. So how do you want to live while retired? Will you downgrade your house, live with your children, or move to a retirement community?

• Insurance. Nothing is certain in life. You need to be insured for worst case scenarios. Every financial plan must have provisions for insurance. Ultimately we insure our properties, our cars, but do we insure the most important asset in our lives?

These objectives may seem daunting but they need not be wishful thinking. The actual money set aside could be much less than you think, if effective financial planning is involved.

2. Plan Your Income

Of course, your financial plan isn’t just about your dreams. How are you going to pay for it? Most people have their career path set in this format – go to college, get a job, work hard up the ladder and retire. And there is nothing wrong with this except there is high uncertainty in today’s economic environment. People change jobs all the time due to layoffs or to seek fresh challenges.

Instead of a day job, you can consider starting a businesses or becoming a freelancer to sell your skills. Business isn’t just for those with money, MBAs or connections. You can start a home business; make money online with a website, etc, etc. Besides by becoming your own boss you can find other income sources through network marketing or investing. Investing is great for building a side income as it is simply growing the money you already have. You can buy gold, stocks, bonds, property, etc.

Regardless of if you are a business owner or an employee, you should not let your money sit idly under your mattress. Even putting your money into an online savings rather than a conventional bank account is more profitable. The aim is to get your money working for you…which at most times, is not always free of risks!

3. Your Financial Plan

At its core, a financial plan is a lifelong budget. You’ll be budgeting not just your next pay-check, but for your entire life. Planning involves knowing how you’ll get there and when you’ll get there. There are no hard and fast rules.

You have to be rational enough to assess your current situation, creative enough to see what is possible, and have the integrity to follow through with the plan. Remember, just because it’s on paper doesn’t mean it will happen – you have to decide to follow through and live up to your goals.

If you are interested in having a financial game plan done then I can help you by taking you through the steps with ease and efficiency by doing the following:

• Timeline. Establish where you want to be in five years? Ten? Thirty? Fifty?

• Research necessary costs. Your current “bills” plus 5% inflation per year. Don’t forget to factor in life insurance, health insurance, car insurance, etc.

• Research luxury costs. What you “want” to do. Cruises, nice cars, nice house, etc.

• Plan income strategy. For most people, this starts with their wage. But don’t forget that your job isn’t your only means of income. Starting a side business, a money making hobby, or even making money online are viable options for earning an extra income.

• Plan Investments. Investing is simply a must to counteract against inflation. As you age, financial security should become more and more important.

Try to factor in every cost and possible income. Whenever you aren’t sure about the numbers, be conservative. Also, bear in mind that a financial plan is ALWAYS about your goals. It’s not just about the money – it’s about getting what you want out of life. Money is just the tool!

To Your Financial Success!

Butterfly Wealth Creation