By Paul McCormick, Gower Financial Services Director & Senior Financial Planner

Do you know what your financial future looks like?

 

Many people can answer how much they earn, but fewer can confidently say how much they spend each month, how much they save – or whether they’re on track to retire early or reduce their working hours.  Personal financial forecasting brings clarity to these questions and helps you take control of your future.

At its core, financial forecasting is about aligning your money with your goals. Whether you’re planning for retirement, considering a career change, or preparing to support your children through education, having a clear picture of your finances gives you confidence to act.

Why set financial goals?

Goals give your financial planning a purpose. Without them, it’s difficult to know if your money is working hard enough—or in the right direction. Ask yourself:

  • What do I want to achieve in the next 5, 10, or 20 years?
  • Am I saving enough, or could I be doing more?
  • How would a change in income or expenses affect my plans?

These aren’t just big questions. They’re also deeply personal—and the answers often require more than a rough mental estimate.

Plotting your cash flow: simple tools, big impact

Cash flow forecasting takes your income, expenses, savings, and investments and projects them into the future. It helps you visualise what your financial position might look like at different stages of life.

There are several ways to approach this:

  • A simple spreadsheet: If you’re comfortable with numbers, building your own model using Excel or Google Sheets gives flexibility and control. This approach can work well for tracking day-to-day income and expenses or planning a short-term goal.
  • Budgeting and forecasting apps: There are too many available to mention, but a search of your favourite app store will yield a number of good options.  Many include forecasting features that simulate your financial future based on your current habits.
  • Professional advice and tools like Future Forecast: At Gower, we use our Future Forecast planning tool to offer a detailed, bespoke financial roadmap. Combining expert insights with sophisticated software, we can help you explore your goals, model future scenarios, and test how different decisions might affect your plans.

The benefit of planning ahead

A well-plotted forecast does more than help you feel organised. It can:

  • Identify potential shortfalls before they become a problem.
  • Show how much you need to save to achieve specific goals.
  • Highlight when and how you could afford to make lifestyle changes.
  • Provide peace of mind that your plans are viable—or time to adjust if they’re not.

Importantly, your forecast isn’t static. Life changes, and your plan should evolve with it. Regularly reviewing your goals, income, spending and savings helps keep you on track.

Final thoughts

Financial forecasting isn’t just for the wealthy, it’s for anyone who wants to feel in control of their future. Whether you use a spreadsheet, an app, or work with a professional, the most important step is simply getting started.

So ask yourself:

  • Do I know where my money goes each month?
  • Do I have clear financial goals—and a plan to reach them?
  • Have I stress-tested my future for unexpected events?
  • Am I making the most of the resources I have now?

If the answer to any of those questions is no, you’re not alone—but you do have options. And if you’d prefer to work with a professional, we’re here to help you explore them.

Learn more at www.gower.gg or email paul.mccormick@gower.gg