5 Strategies for Financial Planning Success

The right financial planning strategies are key to creating one’s desired lifestyle. 

However, the road to a comfortable lifestyle might be met with unforeseen hurdles. A change in circumstance, like loss of job or being incapacitated, can put a dent on one’s finances. Without any type of financial planning strategy, getting to that goal can become challenging. 

Why it’s important to have the best financial planning strategies

Having a financial strategy makes it, at the very least, less problematic for individuals to handle money and, believe it or not, stay healthy.

The good news is no matter what an individual’s current situation is, there are many opportunities to fix money problems and get back on the road to financial security. Here are some tips:

1. Catch up with superannuation

Superannuation is among the tax-effective ways to build wealth and prepare for a comfortable retirement. Putting in more money to a super fund can make a lot of difference for the future.

Naturally, strategies for beefing up one’s super vary depending on age, but here are some general recommendations:

• Check on employer’s superannuation guarantee contributions
• Consolidate multiple super accounts
• Identify ways to more extra contributions
• For those who fall under a specific income bracket, explore options for government co-contributions
• Check for insurance coverage for total and permanent disability, death, and income protection
• Explore available investment options
• Consider tax-saving strategies, like salary sacrificing
• For those with spouses, consider making co-contributions

The good news is no matter what an individual’s current situation is, there are many opportunities to fix money problems and get back on the road to financial security.

2. Start working on a budget

Budgeting can play a vital role in managing finances better. This can be empowering for individuals who wish to be more in control. The problem is, staying within a healthy level of spending is difficult for many because they find it difficult to calculate expenses.  

A study from online bank, Ubank, showed that 86% of Australians are not aware of their monthly expenses because most find it hard to determine how much they should ideally work with. These are the dire consequences of going beyond one’s spending power:

• Missed payments that can incur penalty fees and interest,  
• Weak emergency fund;  
• Bad credit report, and  
• Undue financial stress

3. Emergency fund

Finance professionals recommend having an emergency fund that’s at least good for three to six months. That way, unforeseen events like loss of income or unexpected expenses will have minimal impact on one’s financial ability.  

A recommended place to put one’s emergency savings is a high-interest account that is easily accessible, without fees or restrictions. It can be any of these four types: savings, checking, money-market accounts, and money-market funds.

4. Deal with debt

There are two ways to effectively avoid the pitfalls of debt: avoid it in the first place or be on time with repayments. Debt can significantly impact credit score, which can affect future capacity to secure funding, like loans for homes, cars, etc., and that is why it’s crucial that debt management is included in the many strategies for financial planning.

Here are some tips on managing debt:

• Track daily spending to monitor cash flow
• Identify the essential expenses and set limits as to how much money should go into each one
• Utilise the bucketing method so that each debt gets allocated with money during payday
• Pay off the expensive debt first
• Consolidate debt
• Stay away from acquiring more debt
• Get professional assistance if needed

5. Start with estate planning

As with taking the measures to ensure retirement savings are in order, estate planning is included in the strategies for financial planning. This is key to protecting one’s wealth and ensuring that loved ones are financially secure in case something happens, like when a person dies or becomes incapacitated and unable to provide financial support.

Professional estate planners can provide full assistance and ensure that an individual’s wishes are properly taken care of.

Want to know more?

What about you? Are your finances in order?

Are you ready to unlock your lifestyle potential?

It has never been more important to remain focused on achieving your financial goals. Whether that be financial security for you and your family, sustainable cash flow to support business growth or to live a lifestyle beyond expectation, the fact is…

You are 42% more likely to achieve your goals if you write them down.**

And even more likely to experience success if you remain focused and on track.

Take action on your financial and personal goals. Have absolute clarity on your top 3 financial and personal goals.

Watch this interactive question and answer webinar where we will hear Group Head of Wealth Paul Gaffney, Director and Accountant Roy Sanderson, and Executive Planner Katrina Pulbrook, share their expert insight into the proven tips and tricks to join the 8%*:

With planning… your lifestyle potential is just the beginning.

Discover what more is possible for your future by getting help from an RJS Planner. Call us today (03) 9794 0010 to book an appointment by clicking here.