Please note the following article is general advice only and may not reflect your current financial situation. Please refer to the Disclaimer on our website for more information – http://www.financialservicespartners.com.au/information/disclaimer
In my group when it comes to friends and money I split them off in to two categories. They are either a financial warrior or a financial worrier. Either they feel financially confident and free or they feel out of control and disempowered.
I fall in to the latter of the categories. I worry about money. I always worry I won’t have enough, I worry that I am sometimes being too extravagant with my hard earned cash and I worry that I don’t spend enough time and energy getting the right advice so that I can put a proper plan in place and enjoy some financial freedom.
I envy my friends who are the warriors. They have a good financial plan in place that they aim to review annually to take in to consideration any changes that have impacted their life in the last 12 months. Their financial adviser keeps them on the right track, ensuring their plan matches their financial goals and lifestyle and looking out for other opportunities, such as investments, to build more value in to their financial plan. These friends lead a nice, comfortable life and are realistic when it comes to their spending.
So, with my goal before Christmas being to get my finances in order, I need a place to start. I sought advice from a financial adviser and they had 5 tips to get me started.
1. Establish goals – I need to decide what it is I want and when I want it so I have a specific and measureable goal.
2. Gather relevant information to assist with strategy development – this is information that would help a financial adviser know more about me, such as what investments, insurance, income protection, savings accounts, property, superannuation accounts, income etc I have.
3. Work with a financial planner to develop a financial plan – look at their recommendations and consider what I am comfortable implementing. I may not do them all at once, but at least I have the right information to get started slowly.
4. Take care of my superannuation – having multiple accounts, paying multiple fees, not being in the right type of fund with the right type of investments and generally ignoring its existence is not smart. The sooner I start paying attention to my superannuation, the better I can expect my lifestyle will be in retirement.
5. Insurance, insurance, insurance – can you afford not to be insured? Yes it is an expense now but one that will benefit you should anything unforeseen happen which would set back your financial plan should you not be insured. If I provide a financial adviser with my age, occupation and lifestyle then they can discuss the different types and level of cover available to me and the alternatives I could consider.
When considering professional advice it is important to choose an adviser you can trust as you will need to have an open and honest relationship with your adviser because this will be a long term relationship.