Have you had a Financial Life Modelling discussion with your partner?
Whether we like it or not, money can make or break a relationship. So, it’s important for couples to be on the front foot when it comes to getting their finances in the best of shape. Financial Life Modelling is a way to plan out your life, and get everything that is important to each other out on the table for discussion.
According to Relationships Australia, money is the number one cause of divorce in Australia. Ignore it at your peril, because two out of three couples who avoid talking about money end up arguing about it instead. And lying about it will have a negative impact on 3 out of 4 couples. Sweep money issues under the carpet now and chances are your relationship will pay the price later.
What is Financial Life Modelling?
Financial Life Modelling is a unique approach by Boutique Advisers to help professional families build a better future together. It’s a whole of life planning journey, focused on keeping you united in your approach to life as a couple and the goals you have for your lifestyle and finances.
How does it differ from a traditional Financial Plan?
A traditional Financial Plan is generally a financial advice document that specifically focuses on your financial goals only. Financial Life Modelling on the other hand, has a completely different purpose.
It focuses on planning a future together, based on your shared goals, the purpose and intent of money and most importantly the concept of “how much is enough?”
Who needs Financial Life Modelling?
Financial Life Modelling is a great way for professional families to get money out in the open. It’s also ideal for laying down the ground rules between you and your partner about spending, saving and many more crucial conversations.
What to expect from Financial Life Modelling?
The Financial Life Modelling process begins by examining the state of your joint finances. We will explore with both of you everything about how to make money work but on a personal and practical level.
This includes a close-up look at your current finances and then developing a strategy to guide you towards what is important to both of you. For busy professional families there might be a focus on paying for your debt reduction, children’s education, managing cash flow better, buying or starting a business, a comfortable retirement, protecting your family with insurance, or maybe all of the above.
Financial Life Modelling is a visual representation of your life, with your goals and milestones all clearly planned.
It starts with a conversation about:
– What is important about money to each of you.
– What goals do you have and how they relate to the purpose of money.
– What you currently have and what you owe.
– What’s working and what’s isn’t with how you save and spend.
– What money could help you achieve together and as individuals.
– How much is realistically enough to do all the things you want to do in life.
These goals alongside your current financial situation is mapped out, so that you are able to see your entire life on one page. Our Advice Map enables you to see where you currently are, where you want to go and what the gaps are.
Once the Advice Map has been confirmed the real excitement begins. Work out your Financial Life Model. This will give you a visual snapshot of what the plan is and what you are going to do each year to get closer to your goals.
Once you have gone through the Financial Life Modelling process, should there be any Financial recommendations then we will provide you with a Statement of Advice which documents the next steps.
Checking in as life takes over
A key aspect of the Boutique Financial Life Modelling tool is checking in on a periodic basis with you and keeping track of your progress towards your goals. You can get on with the exciting stuff of life while the money side of things is all taken care of. And as things change, we update your Modelling to show the impact on your life and allows us the perfect opportunity to hit the refresh button on those list of goals.
