INSIGHTS WITH EVALESCO
January is a great time to set some good financial goals. But don’t go crazy. Be sure to set small realistic goals that will help you work toward your larger goals.
You may want to start with a large goal such as buying a house or retiring early and then look at the things you will need to do to reach that larger goal. Regardless of your goal, it’s wise to set up a support system to make it easier to reach your financial goals. It’s also important to measure your progress periodically throughout the year.
Consider some of these financial goals to take on in the new year.
Revise your budget
Revising your budget can be one of the most important things you can do to be financially successful. There are a lot of people who make a lot of money but are struggling financially because they do not manage their money well. The start of the year is the perfect time to take a look at your monthly budget, reduce spending if possible and make any necessary changes to ensure you can stick to it all year long.
Get out of debt
Getting out of debt is another key step to taking control of your finances. With a focus at the start of the year on getting out of debt you can reduce the amount you pay in interest, and you can utilise the money you’d otherwise put toward debt payments somewhere else, such as your mortgage or investment portfolio. The first step is ensuring your monthly debt payment plan is still scheduled with your bank. If you can increase the amount you have scheduled in your payment plan for items like your credit card you will be able to reduce the amount of interest you pay.
The new year is a great time to sell items around the house like unwanted gifts or items you don’t use anymore. This money can help contribute to paying off your debt. It is also an incredible feeling to be debt-free. You have more freedom to do the things that you want to do. You achieve greater job flexibility and more peace of mind. While it may take some sacrifice to make it happen, it is worth the effort.
Start saving money
2020 saw many of us saving money from the months in lockdown, this newfound habit can continue in 2021. If you currently don’t save a portion of your monthly income, why not start now! This money will start to add up quickly and will help to reach your financial goals faster. If you are considering saving for retirement this additional monthly income can be put towards your superannuation fund
If you are struggling to find ways to save you can start by cutting back on some of your expenses outlined in your budget. Alternating you can do a few simple things like reduce the days you eat lunch or dinner out, reduce your grocery bill or find ways to save on your utilities. Saving can be more effective if you have something you are saving for, as well.
Investing allows you to grow your money at a much quicker rate. There are various options when it comes to investing, you can begin with an investment portfolio, or working towards increasing your superannuation fund for retirement.
If you are cautious of investing because of the current market conditions or because you do not understand how the markets work, please talk to your financial adviser. They will help you understand the risks and benefits of investing and should be able to help you find investments that match your current comfort level when it comes to risks.
If you need help with the financial aspects of your annual tune-up, give us a call on 9232 6800. We’re always here to help.
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We believe the true value of financial advice isn’t found in dollars and cents (although this is important too!) but in the peace of mind a financial plan can provide. It’s knowing where you want to go and how to get there, with a dedicated team behind you every step of the way.
We know the impact of good holistic financial advice can make and we have the life experience, technical capability and quality support team that can make that difference for you. We’ve empowered over 1000 families through the delivery of great financial advice, to be healthy, wealthy and happy.
The amount of super you’ll need when you retire depends on your big costs in retirement and the lifestyle you want. The Associate of Superannuation Funds of Australia (ASFA) estimates for a single $44,224 a year and for couples $62,562 a year is how much you may need. This is only an indicator and our advisers assess everyone’s individual circumstances.
The fees we charge for financial advice is only a fraction of the value we derive for our clients, meaning our clients are always better off after seeing us. Rarely do we encounter a new client invested appropriately for their needs, with adequate risk protection, structuring and estate planning provisions in place. Even small tweaks to a financial plan over a long period of time can result in drastically better outcomes for our clients which eclipses the fees of the financial advice. Additionally, you can opt-out of an ongoing fee arrangement at any time.
In our discovery meeting with you our advisers discuss the initial advice fee and the ongoing fees associated with our services.
After our initial phone call to discuss why you are seeking a financial adviser, we arrange a discovery meeting that outlines what is important to you, your current position, our areas of advice, our approach. We then present a Statement of Advice (SoA) to discuss your goals and our recommendations and go through the steps of how to proceed to the implementation stage. After signing the SoA, we discuss your questions, get you to sign the authority to proceed and complete any application forms before implementing the recommendations detailed in the SoA.
One thing to consider is the interest rate on your home loan in comparison to the rate of return on your super fund. Before making a decision, it’s also important to weigh up your stage in life, particularly your age and your appetite for risk. Whatever strategy you choose you’ll need to regularly review your options if you’re making regular voluntary super contributions or extra mortgage repayments. As bank interest rates move and markets fluctuate, the strategy you choose today may be different from the one that is right for you in the future
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