Managing money can feel overwhelming. Maybe you’re stressed about bills, wondering if you'll ever afford that dream holiday, or lying awake worrying about retirement. You're not alone – 43% of UK adults suffered anxiety or stress due to the cost of living in 2024. But what if there was a way to turn your relationship with money from a source of stress into a pathway to the life you want?
Enter lifestyle financial planning – a refreshingly different approach that puts your dreams first.
What is lifestyle financial planning?
Unlike traditional financial planning that focuses on products and numbers, lifestyle financial planning involves building a financial plan that is geared towards supporting your current and future lifestyle choices. Rather than starting with how much you can save, lifestyle planning begins with a simple but powerful question: if money weren't an obstacle, how would you choose to live your life?
Whether that's purchasing property, travelling during retirement, charitable giving, or providing for family members, your aspirations become the foundation for every financial decision. This approach recognises that your money should work to help you achieve and maintain the lifestyle you dream of as soon as possible.
How it works and why it matters
The process starts with what planners call a "discovery" conversation. Instead of diving into bank statements, the conversation begins with what you aspire to in the short and long term. Your adviser wants to understand not just what you want to achieve, but why it matters to you.
Modern lifestyle planning uses sophisticated forecasting software to model different scenarios, helping you understand when you might achieve financial independence or whether you can afford major life changes earlier than expected.
The transformation often starts with clarity. Most people don't know when they have accumulated enough wealth to change their lives to do the things they want to – lifestyle planning provides those answers.
The life-changing benefits
This clarity brings practical benefits. You might discover you can afford to take that career break, help your children with a house deposit, or retire earlier than you thought. Alternatively, if your plan shows you're not on track, you'll know exactly what adjustments to make.
Perhaps most importantly, this approach can reduce financial anxiety. When 20% have suffered with their mental health due to financial pressures, having a clear plan aligned with your values can be genuinely life-changing.
Getting started
The good news is that lifestyle financial planning isn't just for the wealthy. Anyone can adopt these principles, and it's most effective when started early. For comprehensive planning, speak to a financial adviser who specialises in lifestyle planning – someone who'll spend time understanding your goals before recommending products.
Remember, any financial plan needs regular updates as your priorities change.
Ready to align your finances with your life goals? Contact our team for a free consultation to discover how lifestyle financial planning could transform your relationship with money and help you achieve the life you've always envisioned
