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Back to Basics in 2019 | Independent Financial Advice

Alison Dellow
Private Client Adviser
3 Jan 2019

It is that time again where we farewell the year that was and launch into the year that could be…. or should I say WILL BE!

While many of us will write down our goals for 2019, we should also focus on what we want to achieve in the long term – beyond just a year. Here’s what I mean:

Financial freedom cannot be achieved without setting long-term goals and employing sheer determination, regardless of whether you are fresh out of university, have been working for 20 plus years or even approaching retirement.

Do you want to buy your first home or make your first investment?

Perhaps taking that Euro trip you’ve seen your friends share on Instagram last winter is a priority?

Or do you simply want the flexibility to make those spontaneous trips to Bali?

Having the peace of mind knowing that you can afford any surprise expense, even the boring ones like a broken heating system is comforting, but none of this can be achieved without a plan.

Here ‘s what you should do this month to put you on the right track for 2019 and beyond.

BUDGET LIKE A BOSS

Let’s go back to basics – you should focus on how much you are spending. The power of budgeting can really give you clarity into how you are spending your money. Tools like ASIC’s Smart Money Budget Planner is a very useful tool to set you on your way. Once you know how much you spend its then time to identify what expenses you can pull back on. Focus on your short- and long-term goals and what is important to you.

LEAVE SOME ASIDE

When you work out your expenses, you can see how much can be saved and set aside for your goals – let’s do exactly that. For example, if your savings goal is $10,000 for your Euro trip in June 2020, ensure you are setting aside $550 each month to reach your target. Directing this to a separate account could help you resist the temptation to dip into this account for things that are not part of your plan. To make this even easier, set this $550 as an automatic transfer. This strategy seems very simple, but it is a very effective strategy and one that I personally use. This technique could work for those overseas trips, paying down your mortgage quickly or simply to build up that ‘rainy day’ account.

LOOK INTO YOUR SUPER

When you are young, retirement is far too distant to worry about, especially given you are likely to face other events in your life such as house purchases, marriage, children and creating those precious family memories travelling together. In as little as one hour, you can ensure you are doing the best you can with your super. Check via your myGov account or current super provider to ensure you have all your super in one place. This could save you paying additional administration fees to multiple super funds. The next step is, where is your money invested? Are your super investments too aggressive or are they too conservative? Looking at the investment spread of your super is extremely important to ensure you are not taking any unnecessary risk, especially when our share market can be volatile.

These ideas seem very simple, but they are highly effective. Taking the first step is always hard, but I can assure you it is well worth it.

Has this got you thinking? Have you tried the above and hit a roadblock? As always, we are here to help you achieve your financial freedom, so please get in touch.

On behalf of all at Hewison Private Wealth, we wish you a happy, healthy and prosperous New Year!

Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.auPlease note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.