financial goal

Can You Get Back to Your Financial Goals in 2023?



Posted on: 15th December 2022

We get it! 2022 has not been the most financially stable year in recent memory and we have all had to make far more sacrifices than we are comfortable with. It is not easy to block out the concern moving forward either – and that is making us make choices that will affect our financial future to just get by in the moment.

October saw inflation return to double figures, mortgage rates are at their highest for 14 years and recession peeks around the corner in most scenarios as the political situation seems like a pass-the-responsibility parcel as the economy spirals out of hand.

Naturally, concern about the impact on your long-term financial goals is going to be an ominous black cloud hanging over your head. This can fuel the urge to take immediate action, but independent financial advisers Manchester put it to you that more structured advice on movement for the year ahead is the best option to shift towards.

Facing Inflation Prepared

Whilst global stock markets have not had a glowing 2022, investing for the long-term always has a few bumps in the road that go with the territory. The better way to go is to strengthen your long-term goals and make them clear, helping to keep the focus on them more prominent.

If you stepped up to fight inflation in 2022 at the start of the year, you are no doubt nursing some wounds. Interest rates are climbing which may be great news for savers, but the gulf between savings rates and inflation is still a substantial one. Any cash is losing value in real terms.

With stock markets experiencing a rough 2022, your investments are unlikely to have fared any better, probably witnessing your portfolio lose some value let alone beat inflation. With long-term investments, you have to see it as a contest. In some rounds, you lose, but you typically win more with a bit of strategy behind your movements. With current inflation, the short-term strategy is risky. You can look at Bitcoin investing for evidence of that.

Investing in a well-diversified portfolio of assets such as stocks and shares, bonds and property puts you in a better position to balance against inflation. Whilst inflation can win a round or two, the right long-term game plan in staying invested will ultimately bring you out on top.

Know the Goal

Your financial goal is the target you look to hit during your life that has a monetary value tagged to it. This is commonly retirement planning Cheshire from working, buying a house, travelling the globe or providing support for your loved ones.

Let’s say a couple looks to purchase a house by 2027, calculating they would need around £50k as a deposit. Jointly saving £10k every year enables them to reach such a goal. However, financial goals are personal to each individual and some are short, some medium and others long-term as a category. These goals can be clear and the steps understood with the help of independent financial advisers Cheshire who not only help you structure them, but also help to review the progress regularly to ensure you can achieve the goal through a new strategy.

Contact the team at Haven IFA today to help you get back to your financial goal for 2023.