The Super Fund Co. Blog

OK who stole 2015?! Unbelievably, it is once again that time of year where we take stock of the year that was, and look ahead to a fresh new one.

As you consider your resolutions for 2016, consider the following to make sure it is indeed a happy new year financially for you.

1. Outline a budget. Take the time to sit down and write out all of your income and expenses. This can be as simple as setting up a spreadsheet, or alternatively there are a number of great budgeting apps now available (contact us if you’d like some help with this). As well as your regular bills, think about things like eating out and presents throughout the year – it is important you have a realistic view of your revenue and your expenses.
2. Reduce your debt. Throughout the year, make it a priority to pay off any non-deductible debt (otherwise known as “bad debt”) such as credit cards, personal loans, car loans and home loans. Then review your deductible (“good debt”, such as investment loans, lines of credit and business loans) versus any equity you have to determine whether your cash flow can handle your debt obligations.
3. Pay your bills via credit card with a good rewards program. Ensure there aren’t surcharges on your credit card, or at least make sure they aren’t high (above 1%). This way you can earn points while ensuring your bills are paid on time. Of course – make sure you pay your card off each month!
4. Review your superannuation annually. Review performance, fees, and the appropriateness of your super’s investments to ensure they are aligned with your risk profile.
5. Review your insurances annually. Are you adequately insured in the event of your or your partner’s death? Or if you have an accident and become disabled? Or become ill and can’t work? Conversely, are you over-insured? Looking at your insurances in totality – both in and out of your super – is a critical annual activity to ensure you’re adequately protected, and not paying too much.
6. Review your estate planning. Do you have a current will? And an enduring power of attorney? Do you have an advanced medical directive in place?  Do you require a bloodline trust? It’s best to have these things organised – so that if the unthinkable happens, you and your family are protected.
7. Review your investment structures. Are your current investment structures tax effective, and are the current structures the best structures to protect your assets?
8. Set up a Children’s Education Account or Emergency Account. Place a monthly amount into an insurance bond or education fund for a tax effective savings vehicle. Your children will thank you for an education that is priceless.
9. Plan for a holiday. Hey, you should always enjoy life and have something to look forward to! So put money aside every month and treat yourself to a holiday each year.
10. Get a financial plan. It is amazing how many people don’t have a financial plan. This not something to be afraid of! A financial plan will help you keep on track to meet your financial goals sooner.

With the exception of #9, The Super Fund Co. can help you with each of the above, including a full financial plan. Once you’ve recovered from your New Year’s Eve celebrations, give us a call or email – we’re here to help you reach your financial goals sooner.