My business is similar to most in the sense that it’s a lifestyle business. For me this means that your business should give you the lifestyle you want. But, what is that? How will it cost and are you on-track?
Many people are not sure what they want but we all know what we don’t want. We don’t want less than what we have now so that’s where to start with financial planning.
How much will your current lifestyle cost and are you on track are questions that LifeNumber.co.uk will help you answer. There are only three results; you’ll not have enough, you’ll have too much or you’ll be just right. Whatever your situation, taking some time to produce a cashflow forecast for your life is time well spent.
If you are just right and on-track financially then it’s good to know so you can stop worrying.
If you don’t have enough money you can work out how much off track you are and do something about it before it’s too late. This could be as simple as stop wasting money and putting a bit more aside for your future you to spend. Or, you could decide that you want to drive your business forward and make more profits which you roll up tax efficiently.
The brutal truth is that if you are off track you need to do something or get your head around accepting your lifestyle will not continue.
If you have too much then you need to know as soon as possible. I heard a sad story about a couple who did some financial planning because the husband was diagnosed with cancer and wanted to know his wife would be OK financially.
The cashflow showed there was no problem for her but he could have stopped work six years earlier. He missed the opportunity to spend time with his wife travelling to their dream destinations.
There’s an argument that dying with lots of money in the bank is worse than spending all your money because it means you wasted life.
Life is a not a rehearsal so make sure you live it fully. Book a time to come in and look at LifeNumber.co.uk with me.
Image from Flickr by Barney Moss.