Whatever your vision is for the year ahead, you’ll have to accomplish one thing first: getting your finances in shape. Just a little bit of smart financial goal-setting now might be the difference between realising your dreams and putting them off until next year… or the year after that.
Here are a few suggestions:
Review your investments
Any income from investments like rent from property or share dividends are generally taxed at your marginal tax rate. While capital gains from investments are technically taxed at your marginal rate, there are a number of ways to reduce the tax you pay. This is where sitting down with a financial planner would help work out the best strategy for you.
Before anything else, work on putting away three to six months’ worth of expenses in a liquid savings account, which will be your security against going into debt if an unexpected expense pops up. Having an emergency fund provides peace of mind, and it’ll also guard your credit from unnecessary dings — which you’ll definitely appreciate when it’s time to qualify for a mortgage.
You can’t go back in time and save for retirement. Before you spend a lot of money on things you may regret later, like a new TV or car, make sure you’re putting away as much as you can towards retirement. How much should you put away? This is the reason you should sit down with a Lindale Insurances financial planner to work out a strategy to have a great retirement.
Financial experts suggest paying the debt with the highest interest rate but also the debt that would be paid off most quickly if you paid the minimum. This works two ways. Firstly psychologically the feeling you get when you get rid of a debt makes you feel like a winner, and secondly the money you were using to pay this debt can go on the next debt and will get out of debt, much faster.
If you have been considering the idea of seeing a Financial Advisor, there is no time like the present, to get laser focused now.
This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice and consider a Product Disclosure Statement.