A new year is often a natural ‘pause’ point for many of us, especially when it comes to our finances and life goals. At Balance: Wealth Planning, we believe that your values and goals come first, and your money should then follow. We look at how a values-led approach to a financial reset for 2026 could help you create the life you want to live.

Why do financial resets often fail?

A financial reset is your opportunity to realign your personal and business finances. It’s your chance to reflect on your spending and savings and address any debts. Getting a clearer picture of your financial situation will help you to create realistic budgets and savings goals.

The problem with financial resets is that when you focus purely on numbers without any meaning behind them, your goals can become less meaningful. You might have decided to review your finances because of a major life change, such as a divorce or a new baby. You might have been forced to face your finances due to significant income changes.

Whether it’s a specific situation or you simply want a fresh start to the year, it’s better to focus on your values first, goals second, and your money decisions last. Each stage of this process will determine the next, and your financial plan will be more successful when you know why you want to save.

Life planning reveals what you really want

At Balance: Wealth Planning, our team have been trained to use the Kinder Institute of Life Planning approach. By focusing on what really matters to our clients, we can help them align their finances to their values, instead of just looking at number-based goals.

Using a journal, start exploring key questions to help you dig deeper into what you want from life. What would you like to achieve so you feel that you’ve enjoyed a life well-lived? As a guide, ask yourself where you would like to be in 3, 5 and 10 years. What would you like to be doing and where would you like to live? If you have a partner or spouse, it’s worth discussing this with them, so you’re both aligned on your life plans.

As an example, you might want to semi-retire in 3 years to focus on a side hustle or venture. In 5 years, you might want to fully retire and go on a luxury holiday. You might also have a longer-term plan to relocate and live by the sea in 10 years.

 As everyone is different, every life plan will vary, but this questioning process will help you to determine what matters to you. Think about what you want to do, who you want to spend your time with, and when you want to achieve your life goals. This will provide you with a solid foundation to base any financial plans, so you can create a strategy to get you there.

How to turn reflection into direction

Once you have created a vision of how you would like to live your life today and in the future, you can set some realistic goals. You can then look at practical ways to save and grow your money, ensuring you have enough protection in place if the worst happens.

Firstly, if you want to turn your goals into achievable milestones, then it’s worth carrying out a cash-flow planning exercise. We use sophisticated software with our clients to create a detailed financial forecast, which looks at income, spending, wealth, debts, tax and inflation changes. It also provides our clients with “what if” scenarios that could affect their future.

Cash-flow exercises are a key part of the financial planning process and help you plan for different eventualities, so you are prepared. It gives you a clear picture of your financial situation, and you can then decide how much money you have to save and invest.

If you already have savings and investments, then your financial reset might include checking that they are giving you adequate returns. It might be more beneficial to restructure your investments in terms of diversification and to make them more tax-efficient. A well-diversified investment portfolio will help you manage and reduce market risk.

Holistic Financial Planning, Nottingham and Derby

A structured and holistic financial planning process starts by focusing on your values, followed by your goals, and then your money. This approach will create peace of mind so you can lead a more purposeful life, and it will help you achieve the things you want to do.

At Balance: Wealth Planning, our experienced team of financial planners will spend time getting to know you before we create your financial plan. We’ll ask you questions like, “If you had more time or money, what would you do?” By taking this approach to your life planning, you can develop a structured financial plan that will give you greater control of your money.

Do you need to update your financial planning goals? Get in touch to book your financial review.

Sources:

(Balance: Wealth websites/pages)

https://www.experian.com/blogs/ask-experian/how-to-reset-your-finances/

https://www.investopedia.com/investing/importance-diversification/