A Dream, a Goal, a Plan, a Reality
And BOOM!!! It seems like in a blink of an eye, we went straight from Christmas to February 2019! Looking back at 2018, how was it for you? Did you achieve everything you’d hoped?
Are you better or worse off financially than you were this time last year?
With 2019 in front of you, what can you do to make the most of every moment?
Written down with a date becomes a goal.
Broken down into action steps becomes a plan.
Backed by action becomes
Now that the Christmas ham, pudding and beach days are long forgotten, we thought it a prudent time to give you a short guide to get you started and plan for the year ahead – one term at a time:
Make a start by turning your wishes into goals. Some might be longer-term like becoming debt-free, saving for a home deposit, saving for private school fees or retiring in a few years’ time. Others may be short term such as saving for a new car or a balloon payment coming up later this year. What can you do this year to support those goals? Write it all down and give it a name – something you can own – think ‘Our Financial Goals’ or ‘My Money Plan’.
At the same time, don’t forget living for now. Prepare a month-by-month budget that makes room for the fun times – holidays and celebrations – as well as covering the necessities. Anticipate spikes in your spending. Do your car, home and life insurance premiums all seem to fall due at the same time putting pressure on your cash flow? What about quarterly electricity bills? Investigate monthly premium payments or spreading renewal dates across the year.
Use this first quarter to bed down the budgeting habit and track your actual spending against your plan.
At the end of March, do a quick review of your progress so far and make adjustments if necessary – banking apps nowadays are a great source of information, and can assist in determining if you’re overspending in one area.
If you’re in need of a detailed budget template that you can adjust to suit your personal circumstances let us know and we can send you a complimentary copy of what we use.
It’s time to prepare for the end of financial year (EOFY). By June 30th you should have made any intended additional superannuation contributions such as Spouse Contributions and Personal Superannuation Contributions (make sure you stay within the relevant limits).
Have you finalised donations to your favourite charities for the financial year? Is there any other tax-deductible expenditure you can bring forward?
June is also the month for EOFY sales – an opportunity to grab some bargains on early Christmas shopping and birthday gift purchases. Don’t forget to include these in your budget!
If you’re expecting a tax refund for the financial year just finished, lodge your tax return early. What are you going to do with the windfall? Whether you put it towards one of your goals or blow it on a big night out is up to you. Just make sure it’s part of ‘Your Plan’.
With your tax return out of the way, the third quarter is a good time to start a bit of financial spring-cleaning. Review your super and savings, insurance, Will and Power of Attorney, loans and credit cards, and overall financial strategy. Is everything up to date?
How’s your super doing? Have you had a bonus or salary increase and could you benefit from salary sacrificing? Can you consolidate debt or refinance at a lower rate?
Into the final leg of the 2019 relay – how are you tracking? Are you ‘On Plan’?
Maybe ‘The Plan’ you came up with back in January wasn’t realistic. It’s not too late to adjust both your strategy and your expectations – if anything it would’ve made you more conscious about your spending habits, earnings and what’s really important in terms of financial dreams and goals.
If things are looking good, it’s important to stay focused. Christmas is looming with its temptations to over-spend.
Then take a deep breath, have another wonderful festive season and return the next year with a more detailed understanding and plan on how to turn those dreams into action – to one day make it your new reality.
Your financial adviser is an expert in working out the financial details of how you can achieve your goals. Just as important is the regular encouragement he or she can provide along the way. If you need help to start planning, or work out specifics in terms of your financial goals, give your adviser a call and make a date to put your plan for 2019 in place!
Important Information and Disclaimer
MK Wealth Solutions is a Corporate Authorised Representative No 100223 of Synchron ABN 33 007 207 650 AFSL 243313. The information provided in this article has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your personal financial adviser before you make any decision regarding any products mentioned in this article. Whilst care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither MK Wealth Solutions and Synchron, nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information. Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.
Budget Planner: https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/budget-planner