Do you have that constant nagging feeling in the back of your mind, knowing that you could be financially better off but just don’t know how? Spring is an opportune time to ‘Spring clean’ your financial life as well as the house! Here are 6 simple steps to start thinking about:
Step 1: Seek a professional that can assist you and keep you accountable
One of the most important, if not the most important step, is to seek the assistance of a qualified Financial Adviser who specialises in creating and implementing a tailored financial plan based around your specific financial goals and personal circumstances.
Step 2: Establish financial goals
Identifying your financial goals and timeframes in which to achieve them is key in planning and moving towards the future you would like. These goals should be ‘SMART’: specific, measureable, agreed upon (if you are seeking advice for you and your partner/family), realistic and time based. The more detailed and focused your goals are, the clearer the path can be to achieving them!
Step 3: Establish a household budget
We live in a world where temptation, immediate satisfaction and the ability to over spend is common and often people are completely unaware of exactly how much surplus cash is available to them on a week to week basis. To be effective in moving towards achieving goals, establishing your available cashflow is paramount.
Step 4: Review your Superannuation
Knowing where your Super monies are held and how they are invested is within your control. It is important that the investment selections and decisions made take into account your personal goals and situation.
Seeking advice from your Financial Adviser, and reviewing your account every 6-12 months is a must, in order to ensure that your retirement savings are growing efficiently and effectively.
Step 5: Review your Personal Insurance
There are 4 different types of personal insurance cover that could be available to protect you and your loved ones in different circumstances. These include: Life Insurance (a lump sum pay out to your nominated beneficiaries upon death), Total and Permanent Disability Insurance (a lump sum payment should you suffer a specified significant disability or illness), Income Protection Insurance (a monthly payment to partially replace employment income in the event of an accident, injury of illness) and Critical Illness Insurance (also known as ‘Trauma Insurance’ and is designed to provide a lump sum payout in the event of specified traumatic medical events).
Step 6: Review your Estate Plan
In the event of death, ensuring that a current and valid Estate Plan (eg. Will, Power of Attorney) is in place can significantly reduce the stress levels on your family during their time of grieving. Seeking specialist advice from your Financial Adviser and Solicitor to not only write your Estate Plan, but also review the document’s validity is crucial. Life stages and circumstances, such as divorce from a spouse for example, can automatically void a Will.
So, welcome to beautiful spring! Get rid of that nagging feeling, call our friendly team today and speak with one of our Financial Advisers. We look forward to hearing from you.