The following article is a guest post. Please see our disclosure statement. For all the talk of an impending financial crisis in the UK, the region’s economy continues to showcase a tremendously robust nature. Visa reported an impressive 2.4% increase in consumer spending during October, for example, while disposable income levels have also remained steady despite the decidedly negative perception of the economy as a whole. While disposable income levels may fall next year as the Brexit vote begins to wreak havoc, this is only to be expected in such a volatile and uncertain climate. So you may be wondering how to achieve financial independence in the current climate.
Perhaps more of a concern is the average consumer’s approach to spending during times of perceived hardship, as this betrays an unwillingness to save disposable income and build for the future. This can be extremely debilitating in an unstable economy, as it may leave many ill-equipped to cope in the face of a recession or sudden decline in fortunes. With this in mind, here are three, simple steps that will help you to achieve financial independence:
1. Seek Out Expert Planning and Investment Advice
Whether you have knowledge of the financial market or are new to the concepts of investment and saving, it is prudent to seek out expert financial advice wherever possible. This will enable you to tailor a financial plan of action to suit your precise needs, both in terms of your existing wealth and your underlying appetite for risk.
When looking for a trusted advisor, it may be worth seeking out potential partners that have experience in both core financial planning and investment management. Service providers such as Tilney are available to help you to create a detailed plan going forward, while minimising the overall cost to you as an individual.
2. Make Saving Your Key Watchword
We have already touched on the importance of saving, but you should never underestimate how crucial this is to achieving long-term, financial independence. Without a willingness or ability to save, you will be unable to build any semblance of wealth either in short-term accounts or pension plans. So while seeking out advice and comparing the real-time market will enable you to identify the most suitable savings and investment vehicles for you, it is your foresight and awareness that must compel you to save a fixed percentage of your disposable income in the first place. By aiming to save a minimum of 10% of your disposable income each month, you can quickly build a burgeoning nest egg for your short and long-term future.
3. Constantly Review Your Strategies and Progress
The figure of 10% is arbitrary, of course, and subject to change in line with your goals and earning potential. It may also change over time, as you look to constantly review your savings strategies and the progress that you are making in terms of financial gains. This proactive approach not only ensures that your investments are tailored to suit the prevailing economic climate, but it also means that you can save as much as possible towards securing your independence.
You can review your goals quarterly, annually or as often as you please, depending primarily on the nature of your investments. The main thing to remember is that these reviews are conducted at least annually and lead to informed decision-making. These are wise steps to take when considering how to achieve financial independence.