Take note of how to help your finances

Volume 48, No. 18, October 05, 2006

FINANCIAL literacy is fast becoming a priority for all Australians.

The more skills we gain the better we are able to make financial decisions that will help safeguard our financial future and prepare us for a happy and secure life, now and in retirement.

Quality education and advice is critical for anyone wishing to achieve financial security, plan for the future and meet retirement income expectations.

Gaining vital financial literacy skills will take the ‘chore’ out of budgeting, goal-setting and managing personal finances.

Acquiring these essential skills can help us remove any conflict we may have between our life aspirations and our financial circumstances and goals.

Balancing your life and budget

Developing and maintaining a satisfying balance in our lives is not easy. Sometimes the demands of work and family may mean we put off dealing with some of the more important financial issues for too long.

Worrying about personal finances can contribute to stress and illness, resulting in absenteeism. People may not work effectively because they are stressed about their financial situation, or because they are managing their finances in work time.

Learning to make better financial decisions and setting some lifestyle goals will go a long way in helping to achieve a more secure and stress-free financial future.
Personal Financial Management

Saving, budgeting and planning are the three key factors to successfully managing personal finances.

Putting in place some simple strategies can help improve not only our personal financial circumstances but, more importantly, assist with managing our cash flow.
These should include:

Setting personal and financial goals. This gives us an idea of what we hope to achieve and the time-frame for achieving these goals.

Doing a budget to assist in managing household cash flow (income stream) more efficiently. This way we know where the money is being spent.

Regularly saving money at the beginning of a pay period is a better option than trying to spend less and save what is left over.

Check out options for salary-sacrificing and pay some expenses with pre-tax income.

Save a portion of any pay rise, tax refund or one-off payments received into a separate account to cover unexpected expenditure or as part of a savings plan. Consider paying the remainder off any credit cards.

Check eligibility for any payments or entitlements the government offers for families with children.

Consolidating debts into one package can assist with managing debt and making repayments easier.

Information provided by Defence Wealth

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