Getting Financially Fit

Get Fit (Financially) in 2014

The festive season is well and truly over, another year has arrived and now is the perfect time to evaluate progress on those health and fitness resolutions for 2014.

Looking after your health is important but so is looking after your finances. Below we look at five good financial habits you can adopt in order to achieve some of the resolutions made for 2014.

Follow a program

A fitness instructor will tell you that in order to achieve your fitness goals you’ll need to follow a strict program. But to achieve financial fitness you will also need to follow a strict program, so set yourself a budget and stick to it!

Sticking to a budget will ensure that there is money left over every month for savings rather than leaving each month to chance. Budgets can be painful to establish, but once you take the first step and take control of your finances you’ll find it isn’t that hard. There are plenty of free programs and applications out there that can help you on your way.

Trimming down

Reduce your debts. If you have a home loan then review your progress. What has been the change in your loan balance from a year ago to now? Are you able to increase the amount or frequency of your payments to save interest? With interest rates changing, perhaps now is a good time to review your mortgage and see if you could be getting a better deal.

Make a call to your finance broker and check that your home loan still suits you. Ask them if they can get you a better deal because, in some cases, the loan that suited you a few years ago may no longer be suited to your personal circumstances.

If you have personal loans, outstanding amounts on your credit card or any other debt, now is the time to consider ways to reduce these overheads quickly in order to see an improvement in your overall financial position.

Bulking up

While your employer’s superannuation contributions may provide you with a sizeable nest egg come retirement, you may find yourself with less than you need to really enjoy your retirement lifestyle.

Consider making 2014 the year you start making regular contributions into your fund. You may enjoy a healthy boost to your savings come retirement from only a small contribution each fortnight.

With newly introduced changes to the concessional contributions cap, perhaps now is the time to contact a financial planner and get the most out of your savings.

Injury prevention

There are no guarantees with anything you do in life so it is best to do what you can to minimise the impact of bad luck. In the same way a good warm up can help to prevent injury, risk insurance is designed to minimise injury to your financial security.

Injury and illness can have a dramatic impact on your ability to earn, pay your bills and save so it is important to ensure you have these risks covered.

Professional training

While it can be good to go it alone, generally it is better to enlist the help of a professional. An experienced financial planner can help you monitor progress while you work towards your goals.

If you have decided that now is the time to plan for a fitter financial future, contact us today to arrange a meeting with a member of our dedicated team of professionals.

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