The primary aim of financial planning is to help you organise your wealth so you can live life on your own terms and achieve everything you set out to do. In short, it is to help you reach financial freedom.

In last month’s blog, we looked at what true financial freedom might look like for you, and in next month’s, we will look at some of the common risks and pitfalls to be aware of along the way.

This month, we’re looking at how you can create a roadmap for your path to achieving financial freedom, and what steps you can take to help you get there more quickly.

Read on to find out more.

Achieving financial freedom requires setting a clear target

The first and most important step to achieving financial freedom is to have a clear target that you’re aiming for. After all, what good is a roadmap if you don’t know the destination?

Essentially, it’s about determining how much is “enough” for you to live without financial worries. This is sometimes known as finding “your number”. It is the point at which you have enough to achieve your goals, with work being optional rather than essential.

To find your number, you should consider the following expenses:

  • Regular expenditure
  • Non-discretionary spending
  • Care costs
  • Legacy plans

First, work out what your regular expenditure amounts to each year. This includes all your non-discretionary spending, such as housing costs, bills, food, debts, and anything else that you have to pay each month or year without fail.

Then, consider your discretionary spending and big expenses. These include your long-term goals, such as travelling or home renovations, as well as more regular non-essential outgoings, like dining out. You may also have big expenses you haven’t yet planned for, such as major holidays, that are important to accommodate in your planning.

Finally, you will also need to consider the potential cost of care and any legacy plans you have for your estate and beneficiaries.

Once you have accounted for all of these costs, you will have a rough approximation of your number.

We can help you find targets for each of these expenses based on your unique goals and circumstances. We can also use cashflow modelling to show how rising inflation, changing personal and health circumstances, or shifting market conditions could mean these costs change over time and demonstrate how you may need to adjust your target to stay up to date.

By factoring in your personal goals and variables outside of your control, we can help you find a range of figures for your financial freedom budget. This gives you a target destination for your roadmap and is integral to monitoring your progress along the way.

A full financial assessment can help you understand how close you are to your goal

Once you have found your target number, or a range that would have you covered, you can then assess your current standing to find out how close you already are to achieving financial freedom.

Begin by checking in with your pensions. This includes checking the size of your personal and workplace pensions, as well as confirming the age at which you’ll receive the State Pension (currently 66, rising to 67 in 2028) and the amount you are likely to receive.

Next, assess the total value of your cash savings and investments. Additionally, you may also want to check that your savings and investments are working as hard as possible for you (more on this below).

Now that you have an idea of your current financial standing, consider how close it is to your target figure for achieving financial freedom. You may find you’re closer than you thought or even that you’re already there.

We can help you conduct a comprehensive financial assessment to gain a clear understanding of where you are relative to where you are aiming to go.

Simple steps can help you reach your financial freedom target more quickly

If you haven’t yet reached your target, how far off are you? Are there any changes you could make to get you there sooner?

For instance, this could include cutting back on certain discretionary spending or selling valuable assets, such as a second home. You could also explore downsizing or renting out a spare room.

You may also want to rebalance your savings and investments if, when conducting the financial assessment, you find you have more money saved in cash accounts than necessary for your short-term needs. While investments come with risk, they typically offer better long-term growth potential, which can provide a significant boost on your path to financial freedom.

Moreover, are your existing strategies working as hard as they can for you? For instance, it’s a good idea to ensure you:

  • Make full use of your ISA allowance – You can currently contribute £20,000 each year across your ISAs, which offer tax-free returns on your savings and interest. However, from 2027, Cash ISA contributions will be limited to £12,000 for under-65s, with the remaining £8,000 preserved for investment ISAs.
  • Maximise your pension contributions – Pensions offer tax relief on your contributions at your marginal rate of Income Tax up to the Annual Allowance and can be one of the most effective ways to grow your wealth over the long term. In 2026/27, the Annual Allowance for most people is either £60,000 or 100% of your earnings, whichever is lower. You can also carry forward any unused allowance up to three tax years. However, as you typically won’t be able to access your pension until you reach the normal minimum pension age (55, rising to 57 by 2028), it’s important to ensure your immediate needs are also met.
  • Set up an automated savings and investment strategy – Automating your savings and investments means that money will come directly from your current account each month into these accounts. This helps ensure your long-term goals are funded as a priority before your other spending habits can get in the way.

From defining it to developing a roadmap and then making adjustments to get you there more quickly, we can help you at every step of your journey to achieving financial freedom.

If you would like to talk to us about this further, reply to this email or call us on 0117 959 6499.

Risk warnings

This article does not constitute tax, legal or financial advice and should not be relied upon as such. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. For guidance, seek professional advice.

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.

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.

Approved by Best Practice IFA Group 09/06/2026