This document provides steps for conducting a DIY financial review: 1. Establish an emergency cash fund of 3-6 months of salary. This provides a buffer for unexpected expenses. 2. Pay down high interest debts like credit cards as quickly as possible, and consider consolidating debts into a lower interest loan. 3. Ensure adequate life insurance and long-term illness protection for dependents in case of premature death or illness.

1. DIY Financial Review
Want to review your own finances? Then you can follow
these steps to do a quick review of your situation:

2. The value of investments can go down as well as up and is not
guaranteed. You may get back less than the amount invested. Synergy
Financial Products Limited does not provide advice and this article is
not a personal recommendation to invest. If you are unsure about the
suitability of an investment please seek professional financial advice.
Risk Warnings

3.  Most good advisers would recommend having an emergency, easy
access, cash pot of approximately 3-6 months of your salary in case
of unforeseen events such as losing your job, illness or vital repairs
to your car.
 This cash pot would act as a buffer to anything which may cause
financial strain over the short term, giving some flexibility in your
finances to deal with this event.
Step 1: Emergency Cash

4.  For most of us debt, such as a mortgage, is a necessary evil however
debt built on high interest rates, such as credit cards, store cards and
payday loans should be targeted and paid off as soon as possible.
 If you can’t pay them off you could even look at consolidating any
high interest debts in a single low interest loan, which are currently
available.
 For those struggling with debt, free advice is available:
https://www.moneyadviceservice.org.uk/en/tools/debt-advice-
locator
Step 2: Debts

5.  How much life cover do you have? Is it enough to pay off your
debts and provide a sustainable income for your family? What
would happen if you were to become ill over the long-term? If you
can’t answer these questions then you should find out. Nobody
likes paying for things that they feel they might not need, but in the
event of such an occurrence, then having protection in place is
critical.
 For the sake of a relatively low monthly payment in most instances,
having the right insurance in places means the difference of
maintain your current lifestyle or having to significantly alter it.
Step 3: Protection

6.  With increasing retirement ages in the UK for payment of a state pension,
having a pension pot will give you greater flexibility in your old age. It
could mean the difference between working until age 68 (state pension
age will increase to 68, between 2044 and 2046) or having the option to
retire comfortably before then. Those without a personal pension
provision will have little choice.
 If you’re not currently saving into a pension, then find out if your employer
offers a scheme, as most employers now do and offer incentives to save –
like matching contributions up to a certain level. Then work out how much
you can afford to save. Usually 5% of your gross annual income is a good
target to aim for, but for those that are close to retirement this figure
could be much higher!
Step 4: Pension

7.  Finally, once you have established an emergency fund, paid off high
interest debts, protected your dependants and started saving into
a pension, then any extra cash you should consider investing.
 For most investors their first port of call should be to utilise the
Individual Savings Account (ISA) allowance (currently £15,240 for
2015/16), with the idea of building up a tax efficient investment
pot. This could eventually be used to draw a tax-free income to
supplement retirement income or for a specific long term goal.
Step 5: Savings & Investments

8. Planning for the future isn’t always easy, but spending time and effort
now to understand your current situation should be high on your
priority list. For those that aren’t prepared for the future, it is better
to start sooner rather than later, as the long you leave it the less time
you will have to save!
Summary