So another budget speech has come and gone and as always there has been much comment about the new budget and what it means to all of us. As always there was good news and bad, advantages to be had by those who choose to invest in certain areas and disadvantages for those who invest or earn their living in others.
Certainly, the time has passed to make more comments and no doubt by now you have come to terms with and made your decisions about your actions regarding whatever the new budget holds.
As Hereford Group turn 30 this year we thought it would be an appropriate time for some reflection, and our articles this month will be a little more philosophical than financial but hopefully with still a little solid interwoven financial advice. What we are reflecting on at the moment, following the latest budget speech, is that budgets come and go but life and certain financial principles remain constant.
Life goes on
Regardless of what the new budget holds, it changes very little in terms of the bigger picture of things and as Financial Advisors we strive to ensure that we position you to experience as little change as possible, financially at least, in bad times and only grow in good.
In April, despite whatever the budget holds we still celebrate the month of Easter and our annual mid-year family holidays. It is a time of release and joy for many. We also experience the sobering reminders that there is more to creating the balance of life and a planet that will sustain us as we respect and hopefully get involved with initiatives like Alcohol awareness, Autism Acceptance and the Earth as this is the month that commemorates and draws our attention to all of these.
Financial Principles that remain constant
Some basic financial principles also remain constant and regardless of changes to budgets, pandemics and economic downturns, you will experience the least change if these principles are in place…
Budget and savings
Budgeting sounds like a simple principle but it requires a firm grip on every aspect of your financial income and expenditure and also needs to account for expenditures that will see you through rainy days and those required for growth.
When budgeting is complicated, as in the case of larger businesses, it is advisable to seek financial assistance because saving, maintaining cash flow and having a cushion for downturns are essential.
Invest to grow
Having created space for savings, ensuring that these savings are invested in a flexible, diverse portfolio always gives you some room to manoeuvre in downturns and plenty of scope for continual growth when the budget gives us the opportunity to do so.
Death and taxes
The old saying that the only inevitable things are death and taxes is pretty closely aligned with two of the primary financial principles. The one is to ensure that you are always investing in whatever can give you the best savings on taxes, like Retirement Annuities. The other is that you are prepared for death at any time with a Will and Estate planning that will benefit your family when you have passed.
Plan to live a long life
Ironically you need also to be prepared to live a long and hopefully prosperous life so that your finances in your retirement years can also defy whatever any budget might throw at you. So, solid pension plans and retirement investments need to be in place too.
30 years of understanding people
It has taken many qualities for Hereford Group to have come so far and done so well in the past 30 years and we will go into this in more depth in future articles, but suffice it to say what makes us truly different is that we understand that every individual and business is unique.
Contact one of our Financial Advisors who will work within your specific circumstances to ensure that whatever any budget may bring, or whatever life throws at you, your financial principles will remain as solid as a rock!