The seven golden rules for securing your financial future

Time constraints, the male-centric financial advice landscape and not knowing where to start can leave many women feeling like they’re in the passenger seat of their own finances.

So how can readers rewrite that narrative and take control of their financial future? To find out, we spoke to our friends over at Frankie’s, which aims to help women connect, collaborate and engage with finance.

Frankie’s is on a mission to support women in understanding the tools needed to achieve their financial goals and maximise the potential of their money.

1. Know how much money you have and where it is

Begin by shining a spotlight on your financial landscape and ending any guessing games. Fully understanding the lay of the land - from assets to debts and investments - empowers you to make decisions that resonate with your aspirations.

By understanding where you are today, you’re taking control and setting the stage for future financial success.

2. Define your goals and objectives

Any journey without a destination in mind would become frustrating after a while. It’s the same with your financial plans - we can sometimes struggle to know what to do with our money aside from just saving it.

So get crystal clear about your financial goals. Whether that’s being able to put money away for a rainy day, buy your first home or even launch a business, defining your objectives sets the course for your wealth-building journey.

3. Take stock of your current pension strategies.

It’s easy to “set it and forget it” when it comes to pensions - but even though retirement might seem distant right now, it’s never too early to give it a proper thought.

Dive into your pension plans with a discerning eye, ensuring that they align with your retirement dreams. Take note of your projection, and know your monthly contribution. Tools like PensionBee’s free pension calculator can be useful when doing this.

Understanding how changing your contribution affects your projection can be beneficial in aligning your contribution to fit your retirement aspirations.

4. Ask yourself: “how can I be more tax-efficient?”

Maximising your tax allowances and exploring tax-saving opportunities might seem like a practice reserved for business owners and high-networth individuals. But this isn’t the case: everyone can spend time researching how to optimise their tax allowances.

Comparing and contrasting the most efficient savings accounts is a good place to start. An Individual Savings Account (ISA) allows UK residents to invest and save money without having to pay tax on the money they make. Utilising this tax-free option helps you maximise the potential returns you make on your money.

There are currently four types of ISA available for adults (Cash, Stocks & Shares, Innovative Finance and Lifetime), with varying limits per annum. Each adult UK resident has a £20,000 allowance in total to use across any of the ISAs each year. There are also Junior ISAs available for you to start financial planning for your children, with a current allowance of £9,000 per year.

It is important to be aware of other allowances, such as your savings allowance, capital gains tax allowance and pension contribution limits, which - in addition to your ISA allowance - all enable you to manage your money more effectively. These are often overlooked, so make sure you familiarise yourself with all the options in order to maximise your wealth building.

5. Work out if you’re protected

Life’s unpredictable - but your financial security doesn’t have to be. A foundation of your financial planning journey should consider insurance coverage. It is easy to consider cutting back on your insurance premiums, especially in times of rising living costs, but this financial protection can prevent financial hardship should an unforeseen situation arise for you.

Without financial protection, an unexpected event or serious illness may put you in a vulnerable position, leaving you navigating challenging times with little or no financial support. Consider investing in life insurance and income protection from as early an age as possible. Setting protection sooner puts you on a better footing for the future, allowing you to lock in at a lower premium that will only increase when taking cover in later life.

You can’t build a house that can weather all scenarios without a strong foundation - and you should consider this analogy when planning your own finances. If you are considering reviewing your protection, perhaps speak to your provider to explore the possibility of a different style of payment plan or consider ways to reduce the premiums while maintaining a basic level of coverage.

6. Make your money work for you

Don’t just think about earning money; try and imagine growing it, too. It’s easy to assume that everything will stop working the minute you take a break but your finances don’t always have to be this way.

Evaluate your current saving strategies and explore avenues where your money can work for you. Try breaking this down into your short-term, medium-term and longer-term goals for your money.

With the short-term, focus on starting to build a buffer for yourself, allowing you access to cash/savings should the unforeseen arise. When looking at the medium and longer-term goals, focus on how you might start to invest your money slowly, over a longer period, so that it can work effectively for you.

7. Continuously educate yourself

Knowledge is currency in the world of finance. Stay in the loop with the latest trends and investment news. Empower yourself with the information to make informed decisions, adapt to changes and command your financial destiny.

The hurdles might seem tall - but they’re not insurmountable. With these seven golden rules by your side, you’re equipped to navigate the world of finance with confidence and boldness.

Need help with your finances?

Download Frankie’s free wealth and community-building starter kit and click here to find out more about joining the community!

Frankie’s (@Frankies.UK) is a membership club designed to empower women in cultivating their financial confidence. Through classes, courses, health checks, events and networking opportunities, Frankie’s provides the means for women to not only fortify their future but also gain the tools to consider ways they can start building their wealth, both on a personal level and in business. Company Registration Number: 14258001.

All regulated Financial Planning advice undertaken by Francesca Smith is completed through Jarrovian Wealth Limited which is authorised and regulated by the Financial Conduct Authority (FCA) under FCA number is 770693. Jarrovian Wealth Ltd provide independent financial advice in respect of packaged products such as life contracts, pensions and regulated collective investment schemes.