WHAT’S YOUR PLAN?

Everybody’s different.

Some people want to travel the world and live in a small house, while others aspire to owning a business and becoming an industry mogul.

But, whatever you want from life, you will need to do careful planning.

A good place to start, is to know your short–term goals first and to have a chat with your financial advisor about what’s next.

‘NOW’ VS ‘THEN’

Short–term goals are the ones you ideally want to realise within one or two years, like furnishing your home, buying a new car, and saving for a home deposit.

Long–term goals typically come to fruition after at least five years and include your plans for retirement and, ultimately, for your death.

Once you have decided what your short–term goals are, you have to put your financial house in order by minimising your credit card debt, prioritising the way you spend, and saving for a rainy day.

DEBTS

Do an in–depth analysis of your finances, paying particular attention to your credit card debts, student loans, and so on.

If you can clear the credit card / loan with the highest interest rate first, you can then better utilise those funds.

SAVINGS

Hope for the best, but plan for the worst.

It’s a good idea to set money aside for emergencies, like unexpected car repair or a higher–than–expected water bill.

Treat this ‘rainy day fund’ as an expense to be paid during each pay cycle, but don’t treat it as spending money.

SPENDINGS

Adjust your spending habits.

Nobody is saying you can’t have smashed avocado toast, but you should think about making it yourself rather than paying almost $20 at your favourite café.

The information in this article is provided for general information only and does not constitute financial advice. You should consult with a registered financial advisor if you think this information relates to your unique circumstances.