HSBC: Managing Your Finances With Planning

October 19, 2015

[Advice column by HSBC Bermuda]

I am 44-years-old and need advice on managing my finances. I am paying my mortgage, my child’s tuition and covering other expenses. However, in the long term, I want to buy a boat and retire early.

How do I meet my current financial obligations and stay on track to meeting my long term goals?

With a bit of careful planning and the right advice, you can get your finances in good shape and be closer to achieving your goals. HSBC has experts on hand to provide free financial planning advice*, however here is some information for you to start with.

Sort out your financial priorities

List upcoming major life events or financial commitments, how much money you’ll need and the amount of time you have to meet this goal. For example, are you paying tuition for the next four years, making mortgage payments for the next six years, buying a boat in eight years and retiring in 15 years?

This will give you a clear understanding of your short term and long term goals.

Benchmark yourself

Now that your priorities are set you should evaluate your current financial status. Are you on track to meet your goals? A good rule of thumb is that the total contributions into your savings should be equivalent to a percentage of earnings, equal to half your age.

So, since you are 44 years old, you should pay 22% of your earnings into your savings. If you are not on track, what can you change in your spending habits?

Develop and implement a comprehensive financial plan

Whether you are on track or not, developing a plan is key to achieving your goal. Putting the plan into action may be easier than you think. Cutting down on spending and saving more each month, can make a big difference in the long run.

Review your financial plan annually

Having made a plan that meets your needs, the chances are that those needs will change with each life event [emergencies, weddings etc]. You should see these events as important triggers to review your plan and make any necessary changes.

Free Financial Planning with HSBC

If you are intimidated to develop your own financial plan, HSBC can help. Our approach takes you through the complete financial planning process, at no cost to you. We’ll work with you to understand your particular circumstances and your financial ambitions.

From there, we provide you with solutions on how to manage, grow and protect your savings to achieve your goals.

To make a free Financial Planning appointment visit or by calling 299-5959.

Issued by HSBC Bank Bermuda Limited which is licensed to conduct Banking and Investment Business by the Bermuda Monetary Authority.

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