Know your number – your bigger picture

Let’s face it, daily we’re all being bamboozled with numbers, at work and at home. If we’re honest, most of us have no idea what they mean. Why, because they are just numbers. Whether large, small, percentages or subtractions, they are still only numbers on a screen or paper. What’s often missing is the context, how they will impact us, the real-life bit. The stuff that really counts in life.

When can you retire? How much more do you need to save? How much do you need to sell your business for? What investment return do you need? What happens if you save X, rather than Y? These and many others are the questions we need answers to. But how? After all it’s not all about numbers. First, we need to think about what matters the most to us, but thankfully not in numerical terms, in real life terms. We are human, not robots.

We often talk about knowing your number. However, you can only know your number, once you understand what’s important to you. Your Bigger Picture. The things that matter the most to you. The people that you need to support, the things that you want to do. From this, we can help you work out your number. The amount that you need, to enable you to do the things that matter the most to you. For the rest of your life.

Of course, we need to allow for the unexpected. For a few up, downs and bumps along the way.  Without knowing your number, how will you know if you have enough? How do you know if you are really financially secure? How do you know what money you can give away or invest in a risky business start-up, without knowing your number first?

Now, depending on the stage of life you are at, this will alter what you need to do with this number. It might be the amount you need to save before you can retire.  It might be the number you need to preserve, alongside other more speculative investments. Just think for a minute, how useful would it be if you knew for certain what this number is. By knowing this number, it puts full context around the numbers that are thrown at us daily. It makes the blood, sweat and tears worthwhile. Some of this requires some blank paper, maybe on a Sunday afternoon, with an optional glass of wine. With a roaring fire or maybe a view onto open fields, splashing waves or a sunset. Wherever you are comfortable to give you space for that football team winning kick back kind of thinking. Think about your dream future.  The things that you would regret not doing. The things that matter the most to you. Find your Bigger Picture.

Knowing this gives us the data. Data gives us power. Information to make life changing decisions. Decisions that are going to get us one step closer to achieving what we want. The ability to make meaningful decisions, rather than guessing, like a game of pin the tail on the donkey. I’ll be honest, I’ve spoken to too many people that don’t understand their why. Without this, decisions are made in isolation. This is when mistakes are made. I don’t want this happening to you.

So, please, I ask you to think about the things that matter the most to you. Then you can revisit your numbers. The numbers will soon become YOUR NUMBER and should give you the information you need to ensure that you are financially secure.

This communication is for general information only and is not intended to be individual advice. You are recommended to seek competent professional advice before taking any action. Cashflow planning is not regulated by the FCA.