After many years of marriage, Amanda had recently been through a divorce, and is now single again. In her mid 50s and a homemaker all her life, she had never been involved with managing the family’s finances. She has received her divorce settlement and was understandably anxious about her future financial wellbeing.
Following the divorce Amanda’s spending patterns had changed, becoming ever more impulsive. In addition, she has a son, Iain, in his late-teens, and had become over generous compensating somehow for him.
Although a stressful time, Amanda recognised the need to seek advice in organising and looking after her money and financial resources for the future.
We discussed with Amanda how to manage money in great detail. We looked at:
• budgeting for household bills
• day-to-day living expenses
• planning for the nicer things in life such as holidays
In the course of these discussions Amanda became aware that she and her son were in a relatively privileged financial position. Her financial settlement included a share of her ex-husband’s pensions, some cash, the family home and a holiday home in Spain.
By understanding her priorities both now and in the future, and what financial resources were available, we were able to develop a cash-flow plan to demonstrate that the assets Amanda had received in her settlement meant she could maintain her current lifestyle for herself and her son without worrying about money running out. The plan also identified the opportunity to put some funds aside to help her son buy a home once he finishes his studies.
Amanda now has control over her family budget and is comfortable with her financial position. She no longer worries about money; instead she spends time enjoying life. She has started voluntary work helping those less fortunate and has decided to make an important lifestyle choice and sell the holiday home, intending to use the proceeds to enable her to travel more extensively whilst meeting her day-to-day income requirements.
Her son Iain has now graduated and as part of our approach to multigenerational wealth management, we have discussed the importance of financial planning with him, and he is already taking control of his financial position and developing a savings habit.
At Cowens Financial Services we understand that our clients may experience unexpected and profound changes during their life journeys. Unplanned changes can be stressful, and can impact financially if not managed carefully. Our financial planning services are always confidential and non-judgmental, so whatever you are going through, it’s good to know we are here to help.
If you would like to find out more about making the very best of the changes that are happening in your life, please get in touch, and take the first step to a new beginning.