Thinking about how to improve your financial position can be daunting. Where to start? What to review? How to plan?
Below are 10 simple steps to help you get started.
Spend less than you earn: No matter how much you get paid, you may find it difficult to get ahead if you spend more than you earn. Prudent cuts to your spending can result in big savings.
Get a quote: A budget will show you where your money is going. Depending on when you get paid, you can decide on a weekly, bi-weekly or monthly budget. You need a budget regardless of how much you earn per year.
Pay the credit card: Credit card debt can be a major obstacle to improving your finances. If you don't pay off your outstanding balance quickly, you could end up paying more for things than you would in cash.
Have a savings plan: If you want to increase your savings, you can set aside a minimum of five to 10% from your salary to save.
Invest your money: If you contribute to super and a savings account, and still have some money left over, then you may want to consider putting it into other investments.
Understand your investments: Don't get involved in investments you don't understand. A financial advisor can help talk you through investment options that might be right for you.
Review your insurance: It's important to have enough insurance to protect your family and your income in the event of death, disability or illness.
Update your will: A will is important for protecting where your wealth goes when you die. If you have dependents, no matter how small or how many you have, make sure your will is up to date. If you are unsure about any legal issue, speak to your attorney.
Keep good records: If you don't keep good financial records, you probably won't be claiming all of your allowable deductions and credits. Set up a system and use it year-round. It will help you when it's tax time.
Get financial advice: Many people do not have the time or inclination to manage their finances well. Busy with work and family, many people find it difficult to stay up to date on investment options and understand the risks involved. A financial advisor can help you achieve your goals.
