Is it time to put a New Years' broom to your finances?
Quick quiz. Add up all your debts, including the mortgage and credit cards. Then add the value of all the things you are willing to sell or cash in to pay off the debt. How does it look?
Are you happy with the outcome of this?
IS it time for you to spring clean all your financial planning? If you are keen to get started, here are a few tips. If you would like our help sorting things with you, contact us for an appointment.
Tip 1. Have a detailed look at your super. It is supposed to pay for your retirement?
When did you last have a serious look at your super? What is it invested in? Is this too aggressive or too conservative? This can affect your long term outcome or make you too exposed to markets when you can least afford it, especially in these very difficult times. Have you got more super funds than you need? Have they all got insurance cover in them? Do you need it all? Are there cheaper funds? Can other funds give you better options and better returns.
Tip 2. Review your insurance cover – General and Personal – cheaper and better products come out all the time.
Insurance is very important, but are you paying too much for the cover you have? Are you paying h for insurance cover that you do not need? Are you paying for insurance that does not cover what you think it does? This is where a professional is very helpful. It is an old adage – You get what you pay for and pay for what you get. We have recently reviewed many people and been able to find better quality products at lesser premiums. Try us out – the review is free.
Tip 3. Prepare early for ‘end of financial year’ strategies.
Are you fully prepared for the end of financial year now? You only have less than half the year left to make savings that save tax. The earlier in the year you start using tax strategies the more tax savings you can have. Think of super as your tax saving friend rather than as something that is there but you don’t understand. Have you considered Spouse contributions? Co-contributions? Contribution splitting? Transition to Retirement? Salary Sacrificing? Make the ATO your saving friend.
Tip 4. Take control of your finances. Are you working for a reason other than to pay bills?
Do you seem to go to work so you can give your money to others ? When did you last do a budget? For all those who think that you have no money to save. 2 things to think about:-
- When bills go up – do you find the extra money to pay them?
- When are you going to save – When you are working or when you are retired?
We have a simple budgeting tool we can send you free of charge to get started identifying your spending patterns. Once you know where your money is going, you can start making decisions about what you want to change.
Tip 5. Save a little and often
The biggest way to make money is to start a regular saving strategy. Pay yourself as well as the bills. Saving into a high interest savings account is a great start, but before you know it, you find a reason to spend it. It is just too accessible. If you are interested in discussing this, we can discuss great ways to reduce or even eliminate tax on savings plans.
Tip6. Get professional advice.
While all your friends, family and others have ideas you should try, a Financial Advisers can look at your situation from a wide range of ideas that all together add up to a well planned strategy to get your money to work for you. Independent studies show that people who regularly consult Financial Advisers are always better off financially in the long term, even taking into account any fees and charges they incur. Check this out at the Financial Planners site fpa.com.au or the government web site moneymanager.gov.au