The new year is over; time to knuckle down with some healthy financial goals.
Here are our top ten tips for ensuring you’re on the right track to meet your financial goals sooner rather than later.
Revisit your budget.
Things change. Revisit your household budgets and make sure the numbers add on up the pahe the way you think they do in your head. Any problems or questions, give us a call for our budget organisers to help get you started!
Save 10% of your earnings
Direct debit into a separate higher interest savings account to avoid unnecessary or emotional spending temptations. Or, if you have a mortgage, these savings may be better served by depositing them into your mortgage or offset account (providing you have the discipline to not spend them!)
Pay off ‘bad’ debt first
‘Good’ debt is used to purchase assets that are likely to earn income or increase in value over time – assets such as your house and investment properties. ‘Bad’ debt is used to buy goods that devalue, such as cars and TVs. If your current debt is mostly bad debt, then pay off the credit card or loan with the highest interest rate first. Once paid off, allocate that amount to your next debt until it has all been paid off.
Make extra mortgage repayments
If you’ve paid down your ‘bad’ debt then it’s amazing how increasing the frequency of payments from monthly to fortnightly or even weekly will save on interest, provided you maintain the same total payment for the month. If you can afford more – even better! Call the office and we can let you know how much interest you could save over the life of your loan. You may be very surprised what a difference it can make.
Find ways of saving money (or earning more!)
There are only two ways to improve your financial situation – either earn more or spend less. If your budget is already cut to the minimum, think of ways to increase your income. Can you do more training, gain new skills, chase a promotion?
By transferring your debt into one easy payment, we can help you reduce your total repayments and work out a plan to eliminate your debt and get ahead financially. We may consider consolidating all of your debt (credit card balances, personal loans, car loans etc) into one loan with a much lower average interest rate. If you are a home owner your home loan usually has the lowest interest rate. As always, your individual circumstances should be considered as part of any finance strategy so make sure you talk to us first!
Consider an(other) investment property
Building wealth and financial security through property investment has ALWAYS required a level of sacrifice and self-discipline. Those who benefitted over time are those who put a strategy in place and had the discipline to stick with it.
Talk to us about whether your financial picture could benefit from an investment property… or two!
In the event of illness, accident or accidental death, most families find themselves underinsured. It should never be the case. Don’t let it happen to you by being sure to update your insurance policies annually. This includes income protection insurance, trauma and life insurance, property and other asset protections.
Again, call the office and we will happily recommend a trusted adviser to help you with this process.
Get the best out of superannuation
Review your superannuation. Research any potential ‘lost’ super from previous employer contributions. Consider consolidating separate super accounts into one. Make sure your investment risk profile matches your current retirement timeline.
Teach your kids about money
First you need to be a good role model, so make sure your financial health is in check! Then, talk to your kids about money, about working for it, building it, growing it and protecting it.
It’s never too early to start creating good money habits.
Remember, call us anytime on (02) 8354 3014 to talk about your unique situation and how to get the most out of your financial year ahead.