We can help you find your Lost Super

It's Easy


Register your details below and we'll contact
you within one business day.

Your Name
Your Email
Phone Number
Your Comments

Book a Skype Chat


Register your details below and we'll contact
you when it suits you.

Your Name
Skype Username
Phone Number
Your Email
Preferred Time
Your Comments

Whats Skype? Learn More

Make an Enquiry


Register your details below and we'll contact
you within one business day.

Your Name
Your Email
Phone Number
Enquiry Type
Preferred Time
Your Message

Book a no-obligation consultation


Register your details below and we'll contact you within one business day to set up your no-obligation consultation.

Register below to receive our FREE email newsletter




Blog

January 31st, 2013
New Year Resolutions and your finances by Karl Schmidt

It’s that time of year again… Many of us tend to make New Year’s resolutions around various issues relating to their lives, such as leading a more active and healthy lifestyle, quitting smoking and improving oneself.  One important aspect that should not be ignored is your finances.

The beginning of the year is a good time to take stock of your finances and move forward with a plan.  The following principles will help if you remain committed throughout the year;

Make a budget– Budgeting should not just be carried out by large corporations and businesses, it is also important for families to understand where their money is being spent.  Keep a summary of your expenses and remember to budget for things like car servicing, registration, insurances etc in addition to your weekly spending.  Make sure that your income exceeds your expenses and focus on spending less on discretionary items. In short, live below your means and differentiate between needs and wants!

Clear debt–  Non deductible debt is debt which you cannot claim a tax deduction on.  For this reason this debt is informally referred to as “bad debt”.  Examples of bad debt include; car loans, personal loans, credit cards and to a lesser extent mortgages.  This year prioritise to put more money towards these debts to pay them off quicker and save on interest costs.  If you can adhere to directing the savings from spending less on discretionary items towards these so called bad debts then you are on the right track.

Create wealth/ Investing– Focus on building savings for an emergency fund.  Also it is important to invest in your long term financial security by taking advantage of compounding interest and dollar cost averaging.  More information can be found on these topics in previous blogs.

Remember to set achievable goals and evaluate your performance regularly.  While it is difficult to make true, lasting change, I see many clients get hooked on these resolutions and make big changes in their financial lives. It does not happen overnight. It is a lot like exercising, in that the effort requires commitment, hard work and some pain.

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to be notified of new blog posts


 

Book a
Skype chat
Make an
enquiry




Arrange a Skype Chat



Register your Skype details and your
preferred time for a chat. We'll get back to you
as soon as possible.

Your Name
Skype Username
Phone Number
Your Email
Preferred Time
Your Comments
The BLF would recommend using PFG as a one stop place for financial advice with a great many links to other endorsed financial solutions.


BLF Union

Accredited by AMP Financial Planning
PFG Financial Services Pty Ltd ABN 23 052 977 189 and PFG Global Pty Ltd ABN 50 679 416 839 trading as PFG Financial Services (Global) are Corporate Authorised Representatives and Credit Representatives of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706. For further details including financial services we can offer you and how we are renumerated, please read the Financial Services & Credit Guide V 4.1 & FPFG Global Pty Ltd Financial Services & Credit Guide V 4.0 General Advice Warning: This website contains general information only. It does not take into account your objectives, financial situation or needs. Please consider the appropriateness of the information in light of your personal circumstances.