Financial planning is like a jigsaw puzzle. Each ‘piece’ has an overall part to play, and must work with all of the other pieces, in order to provide you with a complete and cohesive picture. Each piece of your financial affairs should meet (or work towards) your specific goals and desired outcomes, and will ideally ensure as few unwanted surprises along the way as possible.
A good financial plan pulls all of the individual pieces together. It assesses where you are now, explores where you are going (or want to go) and then provides you with a comprehensive roadmap to get there.
We all want to be well
I’ve certainly never come across someone who has knowingly chosen to be sick, ill, in pain or suffering.
But it is likely you will know someone who is currently struggling with a health issue. It could be yourself, a family member, a friend, or a workmate.
Sometimes we are involved in accidents – I’ve had a few myself over the years – those things that you just weren’t expecting and could have had little or no control over. Sometimes they are manageable and easily dealt with, like a small cut you can put a butterfly stitch or a band-aid on. Other times they come at you like a Mack truck from out of the blue and knock you for six!
The lifestyle choices we make on a day-to-day basis can have a flow-on effect in the longer term and can put us more at risk of disease. Symptoms may start small but if the causes are not addressed early enough they can lead to severe ill-health.
Of course, there is some element of risk in every choice we make, from where we park our car, what we wear, what we eat and so on. I’ve spoken previously about how important our health is – most of us rely heavily on good health to be able to function in our daily lives, to look after our families and to earn an income.
What can you control?
First and foremost, look after your health. I’m not a health practitioner, but good health is priceless. We all know what we should be doing to give ourselves the best possible chance of good health and longevity:
- Eat nutritional food
- Exercise often
- Have work/life balance
- Play and have fun
- Rest and relax.
So these are the things you can have some control over. Think about the lifestyle choices you make every day and see where you have room for improvement. Decide what level of risk you are prepared to take each day and how this might contribute towards your future wellbeing.
What about the risks you can’t control or you simply don’t want to take?
Obviously, this is where insurance can play a positive part in your financial plan. Insurance, for example, is a tool for managing risk. And you can structure it to best suit your individual needs, risk tolerance levels and budget.
Remember, insurance doesn’t have to be there to cover all the smallest things that could go wrong. Let’s say, your car insurance probably doesn’t cover your windscreen wipers, or your tyres when they need replacing. Imagine the expense of having insurance to cover all this!
But correctly structured insurance can certainly help provide a Plan B for those bigger risks that would have a much larger financial impact. If you had a car accident and damaged somebody else’s car or property, or ‘wrote off’ your car completely, the financial impact could be large but would be limited to the excess you had nominated.
Health insurance can also work the same way. You don’t necessarily need to insure every prescription, doctor’s visit or dentist bill – although you can do. Covering the smaller costs yourself is often referred to as ‘self-insuring’. You can then choose to have health insurance in place to cover you for the bigger events and choose the type of cover and levels of excess according to your needs.
Private health insurance can provide you with the choice to go public or private and is often another huge incentive when deciding on whether to have private health cover or not. Knowing you can get seen more quickly for certain medical events can be a huge advantage, both physically and emotionally.
These days there are lots of different options, product choices, health insurance providers, lots of jargon, different definitions and even health cover just for kids.
So keep well, control what you can, and manage the risks you don’t want with your back-up plan so you can have peace of mind should something unexpected occur.
Sharon Giblett – Your specialist
Financial Coach for your personal and business financial needs – helping you put the pieces of your financial jigsaw together.
Let us help you:
• Be in control of your money with a roadmap and the right tools to get ahead
• Put in place strategies to achieve your aspirations
• Protect your most important assets
• Understand KiwiSaver and ensure you have it set up to get the most out of it
• Work out how much you will need in retirement and see if you are on track
• Review your estate planning and ensure it is structured correctly for your situation
• With a plan to help you manage and grow your investments
• Be in a position to enjoy the fruits of your hard work along the way
If you are in business, we can help by:
• Assessing your ACC levies to ensure you are not duplicating your cover
• Putting in place a strategy to protect the future value of your business
• Ensuring your business affairs are separated from your personal affairs
• Providing certainty should the unexpected happen – ensuring your business’s continued success
• Assessing your partnership arrangements to ensure you have certainty should the situation change
• Educating your staff through our Financial Capability Education seminars and workshops. Boosting their wellbeing, lowering stress and absenteeism, and increasing profitability
• Establishing an Employee Benefits package tailored to attract and retain fantastic staff
Jigsaw Financial Solutions Limited (‘Jigsaw’) works with you, helping to put the pieces of your financial jigsaw puzzle together to create a personalised Your JigsawPlan™ which provides only the solutions you need. Your JigsawPlan™ can help reduce your financial stress and any worry about your current or future situation. They provide you with a clear picture of where you are now, where you want to head, and how to get there. Putting in place a tailored Your JigsawPlan™ can set you on the right path to financial wellbeing and help you to achieve your goals and aspirations. Regardless of where you are at, NOW is the best time to start. It’s never too early or too late. The important thing is to start.
Contact Sharon Giblett now to arrange your complimentary initial consultation on:
0800 JIGSAW (0800 544 729) or (021) 566 869