I was speaking with a friend of mine recently about cashflow and how important setting goals is – so you know you are on the right track. He said it was something he had thought about doing but was never really too sure where to start.
No matter what your current cash flow, you can (and should!) be planning now, to help you reach your short, medium and long term financial goals. The good news is there are lots of tools to help you on your way to achieving your financial goals.
Here are three common questions which I ask my clients when it comes to setting goals:
Question 1 – Do you have sufficient cash flow available in case of emergency?
An emergency fund, rainy-day fund or savings buffer gives you the assurance and confidence to deal with emergencies or when life just doesn’t go to plan. This is money for unexpected expenses – such as major vehicle repairs or if you need money for a medical emergency, or even in the event of job loss. An emergency fund gives you the confidence that you can deal with issues without the additional stress – if something does go wrong. How much is enough will depend on individual circumstances but a good starting point is at least 3 months of wages.
Question 2. Do you have written financial and life goals?
The best way to achieve both financial and life goals is to start with the SMART principle. You have probably heard of it before: Specific, Measurable, Attainable, Realistic and Timely – it’s the ideal formula to follow when setting financial goals. There are lots of tools to help you get started to work on these goals. You can visit my website to receive a free “10 Year Goal Visual template” or if you want to start smaller – visit the Money Smart Website to access their “Savings and Goals Calculator”
Question 3. Are you confident you will clear your debt before retirement?
“Australians are in a rush to pay off their home loans, with almost nine out of 10 mortgage holders trying to get out of debt sooner, while three in five Aussies are worried they won’t have enough money in retirement”.
Australian Property Investor “Debt and retirement worries are high”. There are some actions you can put into place to start to free yourself from debt sooner rather than later. Small changes such as switching from monthly repayments to fortnightly repayments, adding a little more to your repayments, negotiating a cheaper interest rate with your lender, or completely refinancing.
By setting goals and understanding the flow of your money – you can look at gaining some tangible rewards – and have your money work harder for you, as opposed to working harder for your money.
I am a Brisbane based financial adviser with clients in Ashgrove, The Gap, Kenmore and Chapel Hill. I help professionals make informed decisions and take back financial control. These are just some of the examples of tips I like to share with my clients to help them gain control over their finances and to prepare for planning for their future. By following these tips, like my clients you’ll be able to ensure that when you engage a financial adviser they will be able to help you with what you need. I can also help you implement the appropriate tips for you.
I offer a 30-minute financial review session. In this session, I can review your current financial situation. I can see if I can help you achieve your financial goals and the best (and quickest) way to do so. You can contact our office on 07 3102 4948 or book a time that suits you via the link below.
If you would care to share your experience with me, please comment below!