Happy New Year!
It’s that time at the start of a new year again… so here are some TOP TIPS to help YOU achieve your financial goals in 2017. This might be the year that makes a BIG difference to your financial future!
1. Don’t Know where your money goes?
Review or prepare your budget for the year
Email us for our budget organiser to help you get started!
2. Avoid the Temptation
If you have any surplus cashflow think about entering into salary sacrifice arrangements with your employer or transfer funds into a separate higher interest savings account to avoid unnecessary or emotional spending temptations. If you have a mortgage, set up a mortgage offset account to reduce interest costs.
3. Big Credit Card Debt
Pay off my ‘bad’ debt first
‘Good’ debt is used to purchase assets that earn income and you can claim a tax deduction e.g. investment properties or share portfolio. ‘Bad’ debt is used to buy assets that you cannot claim a tax deduction e.g. mortgage on the family home and personal items. If your current debt is mostly bad debt, then pay off the credit card or loan with the highest interest rate first.
4. Multiple Credit Cards
Consolidate my debt
You 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!
5. Building assets with geared funds
Consider an investment property or portfolio of shares
Building wealth and financial security through property or equity investments requires 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. Again, talk to us FIRST so we can consider your personal circumstances and perhaps help you explore your options.
6. What would happen if your income stopped?
Update my insurances: income protection, trauma, life etc
In the event of illness, accident or accidental death, most families find themselves underinsured. Don’t let this happen to you. Contact us if you have any concerns.
7. Super not so super?
Get the best out of my 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 time horizon.
8. Help me, help my Kids
Teach my kids about money
First you need to be a good role model. It’s never too early to start creating good money habits to help your kids with THEIR financial future.
Happy New Year!