More than just spending less
Good financial planning is essential if you want to achieve your financial goals – whether you’re saving up for a deposit on a property or you’re looking for security for the future, financial planning is more than just putting a few dollars in your savings each month. Here’s a few top tips to do your financial planning like a pro.
Consolidate your debts
First it’s time to get your house in order, and that could mean facing up to a few realities that you’ve been trying to avoid. Do a sense check of your debts – and by debts, we mean bad debts (credit cards, store cards, car loans, or anything else that isn’t making you money) – to try and determine how much interest you are paying. For most people with multiple credit cards, it is a good idea to shop around to check out whether it’s worth consolidating your debts. There are plenty of ways to do this, including a personal loan, a credit card balance transfer, or a special debt consolidation loan. To explore your options, chat to a specialist.
Next, it’s time to consider how to build your wealth as part of your financial planning journey. Doing your research now doesn’t mean you have to act straight away, but it’s a good idea to know what your investment options are so you can plan for the future. There are lots of different types of investment – all with different benefits and drawbacks. At Reventon, we are big fans of property investment as a means of building financial security for the future: it’s a relatively safe method of investment, and can be extremely fruitful if you make sure you have analysed the market and sought high quality property advice before you purchase.
Get superannuation advice
It’s important that you make sure there’ll be no nasty surprises when you finish your employed life. We all want to enjoy our retirement, so seeking superannuation advice is crucial to a good long term financial plan. There are a couple of different ways of arranging your superannuation, either a self managed super fund (SMSF) or a traditional superannuation fund. An SMSF offers flexible terms and allows you to grow your wealth in your own way – but it does come with some extra responsibilities. Or, shopping around for a traditional superannuation fund can add thousands of dollars to your pension in the long run. Either way, it’s about making small, strategic changes to suit your goals.
Keep on top of your budget
Of course, some of financial planning is about your budget. If you’re looking to make the most out of your cash, sit down and do your sums – how much are you spending each month and how much is coming in? Where could you afford to cut back? Once you have identified roughly how much you’re likely to be able to save each month, it could be a good idea to open a separate savings account and transfer a predetermined amount into it as soon as you get paid. Try not to touch it and see how far you can go!
Get professional advice
Even the most determined of savers can sometimes struggle. That’s why it’s important to build up your support system for your financial planning journey. Part of that will be your friends and family – someone to bounce ideas off or ask you if you need to buy that extra coffee when you’re on a budget. But you also need a professional on your side to look at your finances on the whole and give you all the options that you might not have thought of. That’s where Reventon comes in – we’re on your side and can help you work through your finances to reach your goal, whatever that may be.
We offer free consultations with no obligation to take up any of our services. We’ll even come out to visit you at home! Book your consultation today.