Best Interest Advice will provide you with the essential tools to start giving you a better view of your financial life. By setting up your budgeting and savings goals you are now able to start to work with your financial planning expert to really make sure that you make the changes and improve your saving habits and get you on track.
2. Get ahead of your bills
Get your Bills paid on time. Once you are budgeting better and paying your regular bills in advance rather than when you receive them you feel in control and you know what is coming. No surprises. It sound simple but it is so important. That is why millions of Australians are ditching their credit card and using Debit cards. Don’t spend what you don’t have.
3. Find your Net Worth?
Before you can really start to explore the idea of financial independence you nee to know what you are really worth. Add up all your assets subtract all your debt and that is your net worth. Then you can simply apply the rule of 72. That means assume any interest rate or growth rate and divide it into the number of 72 and that will tell you how many years it takes to double your wealth. For example if your had all your money invested in an index fund returning you 12% every year then it would take you 6 years for your money to double. If you earnt 6% every year it would take you 12 years for your money to double.
4. Protect your future
Insure yourself, against loss of income or total and permanent death and or disability. This goers without saying that you need to measure the risks particularly if you take on debt of you have a family. Others are depending on you and you need to be responsible for the completion of the plan.
5. Taxation planning
Lodge your annual tax return on time and automatically. Australians are no longer leaving it to the last minute to finalise their tax affairs. We integrate taxation planning as a core strategy of your plan. With our Accounting division we are able to recommend the best vehicle for your wealth and make sure that if you are making gains and accruing tax liabilities then how can you develop a strategy to reduce your tax wherever possible.
6. Reduce the fees you pay on all your investment products
By comparing the fees you are paying on your superannuation and mortgage as well as being a bit smarter with your store cards you are able to trim thousands off your expenses every year. Now that you have those items working for you rather than against you it is time to really focus on the thing that makes the biggest difference.
7. Invest like the Pro’s
When you graduate to Step 7 – “Investing like a Pro” – you will follow the same investing principles that the top investors around the world follow. It starts with having a global perspective on asset allocation, taking into account currency fluctuations, relative taxation structures and the best exchange traded funds that are available.