This episode of the Your Recipe for Financial Success podcast was published on 13th August 2020. You can listen again by heading to our Episodes page, or on your favourite podcast player.
In this episode, Julie, Emma and Becky serve up 5 steps to planning your finances, also known as PIPSI. It’s a recipe which in the bread and butter in any financial adviser’s recipe book, and they are sharing it with you.
PIPSI is an acronym used when planning your finances, to determine the order your planning priorities should be considered.
P – Protection. Do you have enough protection in place for your family if the worst was to happen to you. We consider the three ‘D’s; dependents, debts and death duties. Do you need or have cover in place to help protect your family’s financial security?
I – Income Protection. Do you have a plan in place should you be unable to work due to illness or injury? This can be sick cover provided by work or can be a private arrangement which you have put in place
P – Pensions. Consider saving for the long term for your retirement
S – Savings. Consider saving for shorter term goals like next year’s summer holiday
I – Investments. Savings that fall in between the two; money that you wont necessarily need next year, but may need to dip in to in, say, 10 years’ time, perhaps to fund your children’s school fees
Have you heard of PIPSI before, money bakers? Which ingredients are you missing from your mixing bowl?
If our 5 Steps to Plan your Finances (PIPSI) has got your stomach rumbling for more financial recipes, check out our other podcasts on our episodes page. Don’t forget about our Facebook page too where you can ask questions and join in discussions about all of our topics!
We think you may also find this interesting: Chamber Webinar - Five Steps to Planning your Finances