What is World Financial Planning Day?

World Financial Planning Day was created by the Financial Planning Standards Board (FPSB) to raise awareness of the importance of financial planning, the importance of having a financial plan, and why you should work with a financial planner. This year the theme is “live here today, plan your tomorrow” with the goal of helping you balance your needs for today with your savings goals for the future.

With a cost-of-living crisis and energy bills rising across the country, there’s never been a more important time to start financial planning and striving to achieve your financial goals.

When is World Financial Planning Day?

World Financial Planning Day always takes place on the first Wednesday of October. This year it will take place on Wednesday 5th October 2022.

Why do I need a financial budget?

A financial budget can help you evaluate all of your monthly expenses and plan for regular costs like bills and food shopping. Budgeting can also make it easier to prepare for any unexpected costs, like your car breaking down, and to work towards a financial goal.

Whether you’re struggling to manage month to month or on top of your financial planning, it never hurts to create a new budget to help you either in the short-term or long-term.

Budgeting each month will ensure that you don’t spend more than you already have and help keep you on track. Then, at the start of the following month, you can evaluate your spending and adjust your budget accordingly. Over time, you may notice some spending patterns that you can either adjust or prepare for.

Making a financial budget planner

When making a financial budget planner it’s best to start by calculating your total income. For some, this will just be your monthly salary, or if you have an additional source of income or combine your income with a partner this can also be included.

Then it’s best to categorise all of your monthly expenses into your fixed and personal expenses.

Fixed Expenses

Fixed expenses are your monthly costs which have to be paid and typically remain the same price month to month. These include:

  • Rent/Mortgage payments
  • Electric bill
  • Gas bill
  • Water bill
  • Groceries
  • Insurance (Car, home, health, etc.)
  • WiFi bill
  • Telephone bill
  • Debts/Loans (Car, credit card bill)
  • Charitable donations

Personal Expenses

Personal expenses are the costs which aren’t a necessity, and the amount you spend on them can fluctuate each month. If you don’t know the total amount you usually spend on any of these, you can use a rough estimate. These include:

  • Clothing
  • Health and beauty
  • Travel (bus/train tickets, or petrol/diesel taking into account any price fluctuations)
  • Eating out/Ordering in
  • Streaming/subscription services
  • Gym membership
  • Socializing with friends/family

Once you’ve calculated the total cost of your income, remove your calculated fixed and personal expenses until you’re left with the difference. This amount can then be put towards your savings or used towards a personal savings goal, whether that’s a new car, a housing deposit, a holiday or a nest egg for a rainy day. If you find you’re spending too much, check out our guide on how to stop spending money.

Saving for goals

If you have a personal savings goal in mind and want to use your remaining income to achieve it a Shepherds Friendly Stocks and Shares ISA may be for you. You can work towards your goal by saving from just £30 a month or with a lump sum from £100. For more information visit what is a stocks and shares ISA and how to open an ISA.

On the other hand, if you want to save for your child’s future you can save in a Shepherds Friendly Junior ISA from just £10 a month or with a lump sum from £100. Any funds saved will be then given to your child as a lump sum on their 18th birthday which they can then use towards their own goals for the future. Whether that’s for their first car and driving lessons, a round the world trip or to be used towards their university education. For more information visit what is a junior isa and our guide to investing for children.

Live here today, plan your tomorrow

In line with this year’s World Financial Planning Day theme, Shepherds Friendly also have a variety of plans to help you prepare for your future, while ensuring you can live in the moment. With our Over 50s Life Insurance you can prepare for tomorrow by making sure you leave a cash lump sum for your family to avoid passing on any debts or to help cover any funeral costs. From £10-£50 a month, you can invest comfortably knowing that your premiums are guaranteed to never rise and your cover will never be reduced, regardless of your future health.

Our Income Protection also helps you live here today while planning for tomorrow by protecting your income for those rainy days when you’re unable to work due to sickness or injury. From just £5 a month this cover replaces some of your regular income in the form of a tax-free sickness benefit.