Sponsored Content
Money management
By Philip Kurtenbach, of HSBC Channel Islands and IoM
IT has been impossible over the first few months of 2023 to ignore the impact that increasing prices are having. The average rate of inflation in Jersey in March this year was 12.7%, the joint highest since the 1980s. This has led to not only retail prices going up, but also interest rates including savings and mortgages, loans and credit cards.
There is help at hand to help navigate this environment, though, and this help is rooted in financial planning – something that, for too long, has been seen as the preserve of the super-wealthy. Actually, financial planning is something we should all be doing. And it is when we experience turbulent times that successful financial planning really comes into its own.
Where should we start?
Not knowing the answer to this is often the first barrier to taking steps to formulating a financial plan. There are lots of options out there and it can be confusing. People often only look at one part of financial planning: their income and outgoings. But especially with high inflation, it is also important to keep a close eye on what we do with our savings and where we place them. Higher savings rates, for example, can give people a false sense of security. But it is important to look at savings rates in relation to inflation – real interest rates.
Financial advisers will be able to give you access to the appropriate tools and services to help you put a plan together – and if financial planning isn’t something you’ve thought about until now, it’s never too late to start. Having that initial conversation with an expert can help put you on the right track, from simple banking and saving tips to investments.
Most reputable banks and advisers understand that in today’s world everyone is different, and a tailored approach is the best way forward. The options out there might surprise you.
Everybody’s circumstances are different but, over the long term, a diversified portfolio between savings and investments into different assets has proven to be the most successful when tackling high inflation and achieving financial goals.
And because you never know what’s round the corner, putting some time into a financial plan now can not only help take the headache out of day-to-day money management but, especially in the current environment, it can help you achieve your life goals in the longer term, too.
