If you like to use the New Year and Christmas break to reflect on your year and set new goals for the year ahead, this blog is for you!
Glenn Hilber from Precision Wealth Management has shared his top 5 things to make the next year your best financially.
Do you set New Year’s Resolutions for your financial goals?
It’s that time of year again when people reflect on the past twelve months and set resolutions for the coming one. For many, getting their finances in order is a top priority.
2022 was filled with doom and gloom, but don’t let that deter you from making savvy investments in 2023 to set you up financially.
As Warren Buffet, one of the most successful investors of the 20th century, says:
“Be fearful when others are greedy. Be greedy when others are fearful.”
In other words, difficult economic times or recessions are often the best times to invest!
New Year Financial Checklist
Here are 5 important things you should consider so that you can make this your best year yet financially.
1. Cashflow management: Have you got budget management or cashflow management plan in place?
Budget management and cashflow management are two of the most important aspects of financial management for every person. Having a budget in place ensures that your income covers your expenses, and that you are not overspending.
Cashflow management is essential to ensure that you have the funds available when you need them and that you are not incurring too much debt. Plus, surplus cashflow gives you the means to invest.
If you don’t have a surplus cashflow – now is the time to review your finances and put a budget in place.
Having a surplus in place gives you a buffer when things get tighter, as we saw happen in 2022.
There are several different budgeting and cashflow management strategies that you can use, depending on your specific needs.
Precision Wealth Management can help you effectively plan and set goals. We work with all types of individuals and budgets.
2. Create an investment plan.
When it comes to managing a surplus of funds, there are a few key financial management strategies to keep in mind.
First and foremost, it’s important to have a plan. What do you want to achieve with your surplus of funds? Whether it’s saving for a rainy day, investing for the future or paying down debt, having a clear goal in mind will help you make the most of your surplus.
Once you have a plan, it’s time to start putting your money to work. If you’re looking to grow your wealth over time, investing is a great option. But if you need access to your funds in the short-term, a high-return savings account may be a better choice.
Whatever your goal, Precision Wealth Management offers a wealth of knowledge, so you can make the best decisions when investing in the year and years ahead.
3. Review your superannuation and consolidate accounts?
There are a few things to consider when deciding whether to review your super or consolidate your accounts.
If you have multiple super accounts, it may be beneficial to consolidate them into one account. This can make it easier to keep track of your super and ensure that you are getting the most out of your investment. But it is important to always check to see if you have insurance as closing down a superannuation with insurance means you will lose that cover.
However, you should also review your super on a regular basis to make sure that it is still the right fit for you. Things like your employment situation and investment goals can change over time, so it’s important to review your super to make sure it still meets your needs.
Also, consider making additional superannuation contributions. There are huge tax advantages to salary sacrificing or making tax-deductible super contributions. With the introduction of the carry forward concessional cap, you may have the ability to save a significant amount of tax. Not only that, non-concessional contributions to superannuation mean your money will be invested at a lower tax rate than if you were to invest in your name, which can be beneficial, particularly if you are closer to retirement.
If you’re not sure whether you should review your super or consolidate your accounts, speak to a financial advisor such as Precision Wealth Management who can help you make the best decision for your situation.
4. Review your Life Insurance and Income Protection Insurance
When it comes to financial management strategies, life insurance and income protection can be overlooked for several years. Before you know it, 10 years has passed, you’re in a different stage of life, your financial situation is vastly different, and your previous cover may no longer meet your desired lifestyle and support if the unexpected did happen.
Life insurance can provide peace of mind in the event of an unexpected death. It can also help to cover final expenses and provide financial security for loved ones. Income protection can help replace lost wages if you are unable to work due to an accident or illness.
We suggest reviewing your life insurance policy annually to make sure it still meets your needs. If you have a change in family circumstances, such as a marriage or the birth of a child, you may need to adjust your coverage, too.
It’s also important to review your policy if you have a change in health or lifestyle that could impact your coverage.
5. Review your subscription services at least once every 6 months.
Don’t forget also to review all those monthly subscription services you may have signed up for, to make sure that they are still relevant and being used.
All these small things can make a big difference to your finances when the New Year clocks over – and mean that you can proactively build a kitty of surplus funds to reinvest elsewhere.
New Year Financial Management Strategies
It is important to put Financial Management strategies into place when planning for the year ahead.
Precision Wealth Management’s highly experienced and qualified team are here to help, and we offer ethical, evidence-based, flat fee investment and wealth creation strategies.
Why Precision Wealth Management?
Precision Wealth management makes Financial Management strategies easier. We will help you set goals and get clarity about what you’re working towards so you’re most excited about your financial future.
Book a ‘discovery meeting’ today so can help you build a solid financial foundation and reduce stress in the New Year.
Get in touch with Precision Wealth Management today via phone or email to see if we’re a good fit.