HOW CAN YOU SURE UP YOUR FINANCES IN THE YEAR AHEAD?

Maintaining your health is the number one priority right now, but hot on the tails of this is the need to maintain your financial health and prepare yourself in case your income decreases or dries up.

Here are a few tips you can put into action right now that will help sure up your finances.

 Tip 1: Boost Your Emergency Nest Egg

Got a tax refund or a COVID related benefit from the Government? Don’t spend it. Instead, stash it away or invest it in a managed fund so it’s there in case you need it over the coming months.

Tip 2: Find New Ways to Save

Add to your emergency stash by finding simple ways to save. Avoid the shops (online or on foot), restaurants and take out, and instead put the money you’d have spent into your savings. Work through your existing supplies rather than stocking up – take a look in your cupboards now – you’ll be amazed by what you find to use up in your office and your home.

Tip 3: Work to a Budget

It may sound dull, but working to a budget will make you more aware of what you’re spending, where you’re wasting money and how you can save. Try the free app called Pocketbook to track and manage your spending and consider setting yourself a short or long term savings goal.

Tip 4: Build your Super

Avoid the temptation to spend on pay day. Talk to an expert at the Ayers Group, about how you can set up direct deductions from your income to repay loans or how you can set up a salary sacrifice arrangement to grow your super (which may save on tax). Retirement may seem a long way down the track, but the more you save now, the more you’ll enjoy retiring when the time comes. As an interesting exercise, check out the ASIC retirement income calculator to help determine how much monthly income you’ll need in retirement.

Tip 5: Ask Your Lenders and Landlords for Help

If you find your income is affected by COVID-19, don’t be shy about contacting your landlord and lenders for help. Before you approach them, calmly prepare yourself – consider what you can afford to pay now and how you intend to repay the shortfall. Most lenders and landlords are prepared to help, as long as you don’t hide away until your debt is out of control. Strategically managing your outstanding debts will also help avoid damaging your credit rating.

Tip 6: Stay Calm, Don’t Panic

The share market is currently volatile. If you have investments that are in decline, don’t panic and sell out at a low point because in time, most share values will return to a reasonable level. Evaluate your investment plan and find the determination to stick with it.

Tip 7: Take Advantage of Low Interest Rates

Interest rates have never been so low. Now is the time to evaluate all your debt and consider your options for re-financing or consolidating it all into a low interest rate loan. Take time to compare credit card offerings – it may be possible to transfer a credit card debt from one facility to another that offers 0% interest for a fixed period, allowing you to pay down your debt more easily over time. 

Tip 8: Seek Advice  

Consider talking to a financial planner or your accountant about the best way forward. At the Ayers Group, our experienced consultants can introduce you to experts in finance and accounting who can help you manage your current circumstances and grow your wealth. Talk to the Ayers Group today.