Most of the financial planning that Enable’s IFAs help people with is to make sure they are comfortable financially. But what does financially comfortable really mean? According to one study if you have savings and are debt-free and able to go on two holidays a year that can define you as financially “comfortable”.
The research polled 2,000 adults have revealed the top 30 signs you are in a good place financially, so the list goes on to include things like; you don’t have to count the days until your next payday, your mortgage is paid off, being able to afford house maintenance if it’s needed (for example fixing the shower ASAP if it breaks)having more than £500 disposable income a month, being able to eat out if you feel like it without it having to be a special occasion, you’re confident about your future, you have the ability to make wise decisions about money and spending, you don’t argue over money with loved ones, having multiple investments, you’re generous when it comes to lending money to friends or family and giving to charity.
The research was commissioned by Skipton Building Society and Kris Brewster, head of products for said: “It is easy to think that being in a good place with money means having a lot, but actually it is more about making sensible decisions when it comes to spending and saving.”
Enable’s IFA’s in Bishop’s Stortford know that the number one sign you’re in a good place financially is to have savings. Savings really do help people to feel more financially secure; this is probably because it provides a safety net in the case of emergencies. Enable’s IFAS would agree that savings are a necessity not a luxury. It’s important when looking at managing your personal finances that saving is high on the priority list, regardless of the amount you can put away each month.