New research from Perpetual has revealed that only 11% of Australians are investing regularly and 27% have a savings goal. According to a recent report by Perpetual, 57% of Australians believe their finances are stopping them from pursuing their plans for the future, with 34% saying they constantly think about their financial situation. The research titled What do you care about?, which surveyed 3,000 Australians, found that Australians list their financial situation as one of the top three things they care about in life, next to family and personal health. As a result, 57% indicated they checked their account balances frequently, while 46% avoided making unnecessary purchases, and 45% sought out discounts when shopping.
However, despite this concern, only 27% of those surveyed were found to have established goals for their savings, and just 11% had a regular investment plan.
We say that everyone must allocate time to create a plan for their finances in order to achieve their goals. Having a resolution around your finances and a plan with actionable steps is critical to financial success. Consider your “income and expenses over the long term, the value of what you want and how much time and wealth you are willing to commit to those things.
It is important that you take stock of the cost of your goals in order to establish investment strategies that will provide them with the level of returns needed.
It is beneficial to evaluate your goals around important questions such as: How much will it cost to live? What level of education do you want to provide your kids? Do I want to protect my health by purchasing private health insurance? These are items requiring significant investment. So, thinking about goals early is important. Planning how much you will need to accumulate to realise them is going to give you a tremendous amount of financial peace of mind.
Here are our tips for organising their financial situation:
List and value all your assets;
Compose a budget and monitor your expenses;
Determine your key life goals and understand the costs;
Top up your superannuation with additional contributions;
Write down your debts, including your mortgage, credit cards, loans etc;
Put any additional or unexpected funds you come by into paying down your debts;
Meet with us to create an investment strategy;
Consider estate planning and allocate beneficiaries on your super and insurance policies; and
If retirement is on the horizon seek advice immediately.
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