Act now to live your dreams in the future
Financial security – the golden egg we all aim for.
This may sound like a far-off task and perhaps even an insurmountable one to some.
But the reality is, there is a very simple way to get there. Or at least – get started on your way.
Discover the art of financial life planning
Financial life planning is making solid financial moves today that will secure your future.
It means managing your assets, liabilities and handling your cash flow whilst you still have the capacity to make changes.
Basically, maximising your time in the workforce whilst bringing in an income to set yourself up for the future.
So how do you do that?
There are a few key steps to implement your Financial Life Plan – your FLP.
3 steps to creating your FLP
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Create a personal financial statement and budget
A fancy way of saying – list all your assets, liabilities and a general budget to track your cost of living expenses.
Once you have it all down on paper, you can see your incoming and outgoings and where any wasted funds are being funnelled.
Can you pull back in some places? Save that little bit more?
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Set long and short-term goals
How can you set a Financial Life Plan if you don’t know what you are striving for?
Is it to eat out every week once you retire? An overseas trip every year? A new car every 5 years?
Set out your goals for the next 5 / 10 / 20 years with clearly identifiable goals for each period of your life.
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Make the most of your income, now.
The general rule of thumb is to set aside at least 10% (15% is even better) of your income into savings.
Make note, this is NOT for a holiday or a new wardrobe.
This is your slush fund for your future self – when working can become an option, not a necessity.
Don’t be afraid to invest
Once you have created your budget, have your goals in place and a savings plan in action, don’t be afraid to take the step into investing.
There is never a better time to enter the market than right now. Because time out of the market is missed time.
Catch up on our many blogs about timing the market and staying the course in turbulent times. They give a lot of insight into why just starting is better than delaying when it comes to investing.
If you’d like to have a chat with one of our Financial Advisors or Accounting team, book an appointment today.
