Why Financial Planning Isn’t Just for the Wealthy - A Conversation with Tom Mundy
In a recent episode of The MorePeople Podcast, host Andrew Fitzmaurice sat down with Tom Mundy, Chartered Financial Planner and Co-Founder of SGM Financial Management, to discuss the evolving role of financial planning, why it’s relevant to everyone, not just the wealthy, and how employers can support better financial education in the workplace.
From Law to Finance: A Broader Purpose
Tom’s journey into finance started in an unlikely place: law. Originally qualifying as a solicitor, he later transitioned into financial planning, eventually co-founding SGM Financial Management. His firm has now been authorised for just over three years, serving clients through life’s most important transitions.
But Tom is quick to point out that while financial planning often includes investment advice, pensions, and protection, its true value lies in providing general life guidance. “We’re often the first call people make when something big happens, like an inheritance, buying a home, or having children,” he explains.
When Does Financial Planning Actually Matter?
There’s a common misconception that financial planning is only necessary for people with substantial wealth or complex investments. But as Tom outlines, every stage of life presents its own financial challenges and opportunities.
For young adults, it might be building an emergency fund or learning how to budget. For others, it’s navigating the financial complexities of homeownership, children, or caring for aging parents. The big difference is this: younger people often don’t know what they don’t know.
Tom shares a telling anecdote about a university student who believed their account balance was growing, only to discover they were sinking deeper into an overdraft. It’s a perfect example of the gap in financial education, especially in early adulthood.
Financial Literacy Starts in the Workplace
So, how do we address that gap? For Tom, the workplace is a crucial platform. “Employers have a responsibility, not just to provide financial benefits like pensions or insurance, but to actually help employees understand them,” he says.
He points out that while perks like gym memberships or free fruit might seem appealing, long-term financial education can be life-changing. And it doesn’t have to be overwhelming. Even small interventions, like workshops or one-on-one sessions can help employees make better decisions about pensions, insurance, and saving.
Especially for younger staff, understanding how compound interest works or the value of employer contributions can completely shift how they view financial planning.
The Risk Conversation: Why Young People Should Think Long-Term
Interestingly, Tom observes that younger people tend to be more risk-averse, even though they’re in the best position to take investment risks, particularly in pensions. “You won’t touch that money for 35 years,” he says, “so take the risk now and benefit from superior long-term returns.”
This points to a larger issue: young adults often struggle with long-term thinking when it comes to money. Retirement feels distant, and the idea of insurance may seem irrelevant- until it suddenly isn’t.
Starting Small, Starting Now
So where should someone start if they’ve never given much thought to their finances?
Tom outlines a simple, three-step structure:
Build an emergency fund – Enough to cover 3–6 months of living costs.
Protect yourself – Insurance for dependents, mortgages, and your income.
Invest for your future – Make the most of pensions, ISAs, and tax-advantaged options.
And most importantly, start small. “Financial planning sounds intimidating, but it doesn’t have to be. Start with £50 or £100 a month. The power of compound interest over time is astonishing.”
Final Thoughts
This episode is a powerful reminder that financial planning isn’t about being wealthy -it’s about being prepared. Whether you're in your 20s just starting your career, or in your 40s with a mortgage and a family, financial advice has a place in your life.
It’s also a call-to-action for employers: offer more than just a salary. Provide your teams with the tools and knowledge to build lasting financial resilience. Because at the end of the day, the best time to start was yesterday. The second-best time is now.
