Connecting with your future self can help you to plan for the future.

People often find it hard to save for retirement because they’re unable to imagine their future selves. If you’re in your 30s, your 60-, 70-, or 80-year-old self is likely an almost total stranger.
 
Another problem when trying to imagine your future self is that most of us feel significantly younger than we actually are. Even when looking in a mirror, it can be hard to correlate our real age with how we look or feel.
 
In fact, a 2018 US study of more than 500,000 people revealed that most people feel around 20% younger than they actually are [1].

If you relate, read on to find out how cashflow forecasting could help you visualise your financial future, and make a better connection with your future self. 

Cashflow modelling builds an electronic model of your finances

By inputting realistic expectations for future income, outgoings, inflation, and investment returns, the sophisticated cashflow planning software can help you plan for future events.
 
It can help you answer questions like:

• Can I afford to help my children with a deposit to buy a property?
• Will I be able to afford to retire when I want to?
• Am I going to run out of money in later life?
• Will my family have to pay Inheritance Tax on my estate?

Asking these forward-thinking questions, and having the means to predict a probable answer, could allow you valuable time to correct any potential shortfalls.

It’s particularly helpful in showing how sustainable your retirement income may be.

Combining clever software with ongoing advice can give you peace of mind and help you prepare for retirement

Whether you want to retire early or are aiming to maintain a certain standard of living, cashflow modelling could show you whether you have saved “enough”. 

If the software highlights a shortfall, you have time to work out how to close the gap. By increasing pension contributions, for example, or identifying areas where you could reduce spending.

Because cashflow modelling takes so many variables into account – contribution levels, inflation, and expected growth – it can provide a clear picture of exactly how much more you need to contribute to stay on track.

It could also help you understand the steps needed to secure your ideal retirement lifestyle.

With a better idea of your future finances, you may find it easier to connect with your future self

Getting a glimpse into the future, and a better idea of how your finances might pan out, could make it easier to consider what this may mean for your future self.
 
You may discover that you can afford to retire earlier. Alternatively, if you want to help your children or grandchildren onto the property ladder, you might realise that you need to factor in additional savings.

With all the information available, you can see a complete overview of your current financial situation and how this might look in the years ahead.
 
Life rarely follows a straight path and events – good and bad – can alter your future plans at any time. Helpfully, cashflow modelling allows you to change the information provided and illustrate how different future scenarios might affect your finances.

Plus, using cashflow modelling at regular intervals can provide valuable insight and ensure your financial plan remains on track.

Get in touch

If you’d like to know more about cashflow forecasting and how it could help you plan for your financial future, please get in touch.
Email info.wp@titanwh.com or call us on 0800 048 0150.

Please note
The information contained in this article is based on the opinion of Titan Wealth Planning and does not constitute financial advice or a recommendation for any investment or retirement strategy.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested.

Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
The Financial Conduct Authority does not regulate cashflow planning.