A New Year should be an incentive to get your finances in order. But what does financial fitness mean? We believe it is about having financial predictability and security and ensuring your spending habits are under control.
Here are Southern Advisory’s top tips for forming successful resolutions for financial fitness this year and beyond.
1. Review your Expenses
If you don't have a budget, it’s time to think about one. If you do have a budget, resolve to stick to it. Reducing big expenses isn't easy, but keeping your overheads in line with your income can give you far more flexibility to handle financial setbacks.
2. Deal with your Debt
Credit card debt is one of the main reasons people can’t get ahead. New research from comparison site creditcard.com.au shows one-in-four people never meet the required payment every month and one-in-five have three or more credit cards in their wallets. So resolve to pay off those credit cards or think twice before paying with plastic.
3. Protect what you've got
The fundamental role of insurance is to protect you and your loved ones. It's not meant to cover expenses you could easily pay out of pocket, but to cover larger debts like mortgages or ongoing medical treatment. What would happen to your family if you were not around to support them?
4. Write or update your Will
Wills are not just for the rich. Regardless of how much or how little money you have, a will ensures that whatever personal belongings and assets you do have will go to family or beneficiaries you designate. If you have children, a will allows you to appoint a guardian for them in the event of your death.
5. Save, Save, Save!
To strengthen your money picture, you'll have to replace bad spending habits with good ones. It’s a good idea to put funds away for the long term. That can mean paying down debt and/or putting money into a savings account. Think about starting an automated investment system.
6. Seek Advice
One of our Planners can help you by giving advice on your specific circumstances. Contact Us for an obligation free consultation.
Fortunately, if you can make small changes early on, by this time next year your financial picture can be greatly improved. So what are you waiting for? Get financially fit for 2014!
Here are Southern Advisory’s top tips for forming successful resolutions for financial fitness this year and beyond.
1. Review your Expenses
If you don't have a budget, it’s time to think about one. If you do have a budget, resolve to stick to it. Reducing big expenses isn't easy, but keeping your overheads in line with your income can give you far more flexibility to handle financial setbacks.
2. Deal with your Debt
Credit card debt is one of the main reasons people can’t get ahead. New research from comparison site creditcard.com.au shows one-in-four people never meet the required payment every month and one-in-five have three or more credit cards in their wallets. So resolve to pay off those credit cards or think twice before paying with plastic.
3. Protect what you've got
The fundamental role of insurance is to protect you and your loved ones. It's not meant to cover expenses you could easily pay out of pocket, but to cover larger debts like mortgages or ongoing medical treatment. What would happen to your family if you were not around to support them?
4. Write or update your Will
Wills are not just for the rich. Regardless of how much or how little money you have, a will ensures that whatever personal belongings and assets you do have will go to family or beneficiaries you designate. If you have children, a will allows you to appoint a guardian for them in the event of your death.
5. Save, Save, Save!
To strengthen your money picture, you'll have to replace bad spending habits with good ones. It’s a good idea to put funds away for the long term. That can mean paying down debt and/or putting money into a savings account. Think about starting an automated investment system.
6. Seek Advice
One of our Planners can help you by giving advice on your specific circumstances. Contact Us for an obligation free consultation.
Fortunately, if you can make small changes early on, by this time next year your financial picture can be greatly improved. So what are you waiting for? Get financially fit for 2014!
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