Well, February is upon us and most of us have now recovered from the extra spending related to Christmas and summer holidays, making it an opportune time to think about our cash flow.
When it comes to preparing for the future and having a great retirement, managing your money is the number one priority.
Here are some tips to help you get back on track if you’ve not been successfully doing this, or if you want to do it better.
Checking In
The first step in handling your cash flow and creating financial security is checking in with yourself.
How did you do in 2020 with managing your funds?
Did you have more money left over at the end of the month, or more month left over at the end of your money?
It was an unusual year, so if things didn’t go as planned, even with historic low interest rates, it’s important to start again – with some fresh goals in mind.
This applies to those who are retired, who usually need to stick to a budget, as well as those heading for retirement who want to grow their wealth.
Update Your Budget
It’s vital to review your budget each year as things can change very quickly.
This Cash Flow Calculator is a handy spreadsheet to help you look at your income and expenses.
You can find this helpful tool by clicking here
Review Or Set Goals
Saving doesn’t happen without planning and, usually, motivation.
If you want to save, consider having your savings directly debited from your salary and put into a separate account. This is a great way of ensuring you don’t overspend and ensures you do indeed save.
You may also want to help keep yourself motivated to save by knowing WHY you’re saving. Is it to retire 12 months early, head to a faraway destination or buy an engagement ring, for example?
Reduce Debt, Review Super & Invest
Paying off credit card faster is a sure-fire way to save money as interest accrues fast with this line of credit. There are other strategies to reduce this type of debt, so make sure you seek them out if it’s an issue for you.
It’s likely to be one of your biggest assets, so don’t be passive when it comes to your superannuation. Ensure you regularly review your super investment strategy, with an expert if you find it challenging. You can find some great factual information here.
From property to bonds or term deposits, looking at a wide range of investment options that can help you generate wealth makes sense, Check in with your financial adviser or access free resources online at the governments Money Smart website.
Seek Support If You Need It
If you would like to schedule an Advice Assessment meeting to discuss your needs, please call us on 9481 5994.
We’re always happy to guide you.
Enjoy the rest of the month and we’ll be in touch in March!
General Advice Warning
Any advice or information in this publication is of a general nature only and has not taken into account your personal objectives, financial situation and needs.. Because of that, before acting on the advice, you should consider its appropriateness to you, having regard to your personal objectives, financial situation and needs.
