How could Empty Nesters revise their financial strategy!
“Our job is not to deny the story, but to defy the ending, to rise strong, recognise our story, and rumble with the truth until we get to a place where we think, yes. This is what happened. And I will choose how the story ends.”- Brene Brown
In the UK the phrase empty nester may sound like doom and gloom for some parents as the kids have flown the nest and you are left with a little too much time on your hands, whereas, for others, it is like sweet paradise.
The nest may become empty for several reasons, such as children coming of age and moving out to live with friends, flatmates, or partners or embarking on a university journey where they relocate to be closer to their university.
For some parents, it is hard to become accustomed to an empty nest as they miss their kids; in fact, new research conducted by Sky Mobile found that 47% of British parents who have children who started university are agonising about their empty nest era, and 41% have revealed they that they would like their kids to initiate contact with them more regularly.
However, reality does not quite live up to expectations, and with parents having no other choice but to let their grown children roam free into the next phase of their lives, this is not easy on the parents, who reported feeling quite sad even before the kids had left their nest (94%) reported feeling unready to loosen the reigns and live a quieter existence.
Emotions surrounding a child leaving the humble abode can cloud parents’ financial judgement as they may not take any steps towards revising their financial strategy even though they may have had good financial management when the kids were in the home.
Financial welfare is essential for individuals, communities, businesses, and the financial system. However, a negative relationship with money is the case for millions of people in the UK.
In addition, 11.5 million individuals have a saving pot of less than £100. Nine million people regularly borrow to pay for essentials such as food or pay bills. A further 22 million people claim they do not have enough information to plan for retirement.
There are 5.3 million children who receive insufficient financial education. According to the Organisation for Economic Co-operation and Development, these statistics show that the UK is quite below the rankings of G20 countries, behind France, Norway, China, Indonesia, and several other countries.
How to revise your savings strategies now that you have an empty nest?
Organise all important documents within one place
Make sure all your essential documents are in the same place, so you know exactly where to access them when needed. Please keep them in a folder in a place you are likely to remember
A budget plan may make it easier to decide how much money to set aside, as you can include spending and saving strategies within the plan.
If you did a budget plan while your kids were still under your homely nest, revise your budget, as many things would have changed, for instance, your weekly expenses for food and other bills will differ.
Or, if you don’t already have a budget plan, it is never too late to start putting one together. And remember to prioritise your saving strategy over your spending one and to include the amount you can save each month into a saving account; that way, you have all avenues covered.
Fit monetary tasks within your routine
Make time for monetary tasks within your routine, such as updating and checking your budget regularly, doing a credit score check, and using a financial calculator which can be used for a range of things from savings to retirement
Use a savings app
Intellisaving is an innovative saving application which supports the integration of multiple saving and ISA accounts, such as Regular saving accounts. The platform has an array of features, such as a comparison feature to obtain the best saving rates for several saving products with banks and financial institutes. The app also has a watchlist for users to refer back to saving products which piqued their interest during their comparison search. The app is suitable for different savers’ requirements, such as education and retirement.
Revise financial plan
If you already have a financial plan, revise your plan now that the children have flown the nest, as you will see that some adjustments and changes need to be made.
Or, if you have never made a financial action plan, what are you waiting for? Start working on your plan now. Financial plans help simplify your economic outlook as they help you figure out how well your money is working for you at present and how it might work better for you in the future. Having a financial plan is crucial regardless of what stage you are in life.
Adjust insurance coverage
Revisit your insurance coverage to check if any adjustments can be made now that the children are no longer living under your roof because it might be that some of the money going towards your insurance coverage is going towards things your children or you might no longer need.
Also, check that you are getting good value for money with your current insurance by comparing different insurances and be sure to read the fine print as not every insurance coverage is what it seems as sometimes the insurance does not entirely cover your claim.
Pay any outstanding debts
If you have any debts that you have not paid off yet, pay them off now as part of your financial plan so that your debt does mount to the point that you find yourself crippled by debt
Revisit your retirement plan
Revisiting your retirement plan is part and parcel of rethinking your monetary strategy. You may not be spending as much as you used to on essentials such as groceries. And may no longer be putting money in the savings pot for your children; this can mean you can dedicate more money and time towards your retirement plan.
Revisit your savings strategy
Revisiting your saving strategy is crucial as you may be able to do more with your savings now that the kids have entered their subsequent life phases. You may find that within your budget plan, you can put more money in your savings accounts and that there are more suitable financial savings products than the ones you currently hold.
Revising your saving strategy may also leave more room to save on everyday expenses.
The Empty Nest life stage does not have to be a period of doom and gloom, as it allows parents to focus on themselves for the first time in a long time and to do some of the things they did not get an opportunity to do while the kids were living under the same roof.
Parents sacrifice many things while the kids are growing up; therefore, the kids leaving the nest means parents can revisit their finances, such as their savings, to see where they can make modifications that are better suited to their lifestyle change. The nest becoming empty is ideal for revisiting finances and travelling and doing things that you may have had on your wishlist; it is your time to live more for yourself.