5 Step Financial MOT Checklist

Just like we take our cars in for an annual MOT to make sure they are running smoothly, it is also important to regularly monitor and assess your financial plans to ensure these too are on the right track. An MOT will identify how things are running, if there are any problem areas, and whether your car – or financial plan in this case – is in good health and able to get you where you want to go in life.

The start of a new tax year is a great opportunity to conduct your own financial MOT, and I have put together the below checklist to help you through this exercise:

The first step in any financial MOT is to assess your current financial situation. This includes reviewing your income, expenses, debts, habits, and assets against your larger goals to determine how comfortable you are in your lifestyle and keeping up with financial obligations. From here, you may be able to make budgeting adjustments, or perhaps you find you have surplus funds at the end of each month that you could be investing elsewhere.

You may already have pensions, investments and other savings in place, however, it is important to regularly review these plans in order to monitor performance and make adjustments as needed. Consider working with a financial adviser to help you make informed investment decisions tailored to your preferences and attitude to risk, and maximise your returns.

Tax planning should be an important consideration at any stage of life, whether through tax-efficient investing, gifting allowances, Inheritance Tax planning or your personal allowances. However, this is a particularly complex area with many exemptions and allowances that you may not be aware of, and that can change each year with government legislation. For example, there have been huge announcements made regarding changes in pensions allowances already in 2023, and so speaking to a financial adviser to ensure your plans adapt to any appropriate changes is key.

Financial protection is important at any stage of life, and ensuring you are covered for the unexpected can not only help to shield yourself but also your family from a potential financial burden. What would happen if you lost your job? Would your family be able to pay the bills if you were to pass away? Ensuring your income, health and life are covered – just like you would your car – can make a huge difference to you and your loved ones’ lives if something were to go wrong.

There are many areas of financial planning that can often be complex and full of jargon. An Independent Financial Adviser can offer some clarity and help you understand your finances better. We can also help you plan towards your individual life goals, putting a financial plan in place and monitoring this for you to ensure you are maximising on the opportunities available to you.

Please do not hesitate to get in touch for a no-obligation meeting with one of our Independent Financial Advisers to gain a better understanding of you and your financial goals, and explore any areas where we can offer further support, planning and advice.