Goal planning for a brighter financial future is usually centred around a price tag. Understanding future inflationary costs, for instance, can have serious financial repercussions on your impending finances.
So what is inflation?
In a nutshell, it’s the rise and fall of prices in the economy, meaning prices rise as demand increases and drop when demand decreases. Most importantly, though it’s a key measure of financial well being, and high inflation means your money doesn't go as far. So it's fair to say, ultimately, it will affect what consumers can buy for their money.
Understanding how this works
Inflation is expressed as a percentage increase or decrease in prices over time. For example, if the inflation rate for the cost of a litre of petrol is 2% a year, motorists need to spend 2% more at the pump than perhaps 12 months earlier.
If your salary doesn't keep up with the 2% inflation rise, your purchasing power and possibly your standard of living falls. Not only that, but your geographical location can also have dramatic repercussions. For instance, it could be the difference between living in the South as opposed to living in the North of the country. Or, living in the UK as opposed to living in the United States.
For instance, the cost of living in the UK is 6.86% lower than in the United States. There is a great calculator here if you want to look at the expense of living in the UK against inflation.
The Way Forward
If you are worried about how inflation might upset your financial plans in the foreseeable future, why not book a thirty-minute, no-obligation, complimentary consultation to discuss your concerns with a Life Centred Financial Planner.
What is Life Centred Financial Planning
It comes in different forms depending on how much assistance you may require or need. For some people, a one-off consultation will be ample, but others might elect an ongoing facility where the technical strategy is reviewed more comprehensively, especially if it’s to deliver certain clarifications to your explicit requirements.
MRA specialises in cash-flow analysis, taxation, savings and investments, lifestyle planning and much more.
MRA are regulated Life Centred Financial Planners, they help individuals, businesses and families achieve the best quality of life they can with the resources they have. Contact us today on 01424 777 156, or via email firstname.lastname@example.org, to make an appointment and start creating a brighter future today.
You’ll find our Life Centred Financial Planners, experienced, and extraordinarily qualified but at the same time very approachable, proficient, empathetic and practical delivering significant reactions to complications. Life Centred Financial Planners are passionate about working with you to help you achieve your life and financial goals, get control of your finances to enjoy a brighter financial future.
If you found this information useful, you may also want to check out the following:
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Mike Robertson Associates Limited is an appointed representative of Lighthouse Advisory Services Limited which is authorised and regulated by the Financial Conduct Authority. See here for full details.
Specialising in Life Centred Financial Planning, MRA is unlike other traditional independent financial advisors – we are so much more. We help individuals, businesses and families achieve the best quality of life they can with the resources they have. Life Centred Planning is about the person, not the product and our Life Centred Financial Planners look at how your money can be arranged so that it’s serving your aims and dreams in this lifetime.
We are experts in cash-flow analysis, retirement planning, taxation, savings and investments, life centred planning and much more. We are passionate about working with you to help you achieve your life and financial goals, get control of your finances to enjoy a brighter financial future.
Based in East Sussex we service clients across the South East, Sussex, Kent and the whole of the UK including smaller towns such as Ashford, Battle, Bexhill, Bodiam, Brighton & Hove, Cranbrook, Crowborough, Eastbourne, Hailsham, Hastings, Heathfield, Herstmonceux, Lewes, Mayfield, Newhaven, Rye, Seaford, Sevenoaks, Tenterden, Tonbridge and Tunbridge Wells.