As we head into 2022 now is the time to review your finances and ensure you put the plans in place to secure your future.
Here are 5 things you can do today to improve your finances
#1 Bucketing: It is easy to get carried away with your spending and inadvertently spend more than you intended on home improvements or socialising. Being in control of your money is of the utmost importance but it doesn’t have to be difficult. Bucketing is a great strategy that allows you to divide your monthly income into different accounts or ‘buckets’. For example, you can have an account for utilities and groceries, an account for savings and emergencies and another account for socialising. By calculating how much you want to spend on what and bucketing that money away, you can easily control your spending.
#2 Boost your super. Putting a portion of your savings into a Super fund as opposed to keeping it in a Savings Account is a great way to boost your retirement income. While a savings account can give you instant access to your money should you need it, by putting extra money in your Super, you will benefit from compound interest. There’s a lot of money to be earned even from a small injection of cash.
#3 Pay off your debts. While Christmas may have come and gone, the ‘Buy Now Pay Later’ debts remain. Paying these off as soon as you can (even if it is interest free) is a good habit to get into. Firstly, make a list of what you owe and the minimum monthly repayments. Determine how much you can pay off and priorities which debts need to be paid off first. By making a plan to pay off your debts as soon as possible and sticking to it, you’ll gain peace of mind and start the year off right.
#4 Check your government entitlements and unclaimed super. You’d be surprised at the amount of unclaimed Super and benefits you may be entitled to. The problem is that knowing what you are eligible for and even putting in a claim can be quite confusing and complicated. Visit https://www.dss.gov.au/about-the-department/benefits-payments to find out what you may be entitled to and how.
#5 Speak to a financial adviser. Booking a consultation with a Financial Adviser is the best way to kickstart your financial routine and establish a long-term path to financial security. Many people think a Financial Adviser can only help if you have a lot of money to invest in shares. Most also think their Accountant can advise them on everything they need. This is not the case.
There are many things your Accountant cannot advise on and Financial Advisers can help with more than just investments. An experienced Financial Adviser can help with all of the above from Cashflow Management, Government Entitlements, Retirement Planning, Superannuation, Insurances, Estate Planning and more.
Additionally, the Financial Services Council estimates that professional advice can leave people better off in retirement by as much as $91,000.
Speak to us today to see how we can help you.