Top 10 New Year Financial Resolutions

Top 10 New Year Financial Resolutions

What are your financial New Year resolutions?

With the new year, it’s an opportune time to think about setting some financial goals for the year.

Let’s look at some of the Top 10 Financial Resolutions:

 

1.Know your ‘now’ situation

Best way to start planning for your financial future is to know where you’re at, what you own, and what you owe.

Work out how strong or weak your financial position is using online calculators. If you understand your current financial position you can start making smarter financial decisions to improve your situation.

You need to start with a good base, and if you don’t know your own financial starting point, then it’ll end up being one of those resolutions that gets forgotten sooner than you set them!

MoneySmart has an online Net Worth Financial Position Calculator to get you started.

Get started, and don’t look back!

 

2. Become financially savvy & interested

Were you surprised with your net worth financial position? How surprised were you? Are you healthy or unhealthy? Do you own more than what you owe or is it the other way around? Whatever the case maybe, get interested in your financial affairs, and make changes that’ll empower you to work smarter not harder.

Learn more about financial planning for your future, and the benefits of seeking  advice. Read and download information from the internet, and even better get yourself acquainted with a good financial adviser.

The way to a happier and healthier financial future is to lay down a strong foundation to build upon it progressively to suit changing personal and financial situations.

 

3. Know your money ins and money outs

It’s vital to know how much comes in and how much goes out to ascertain how much can be saved.

Get a budget in place. Understand where your money is going versus how much money is coming in. The difference will provide you with left-over money. It’s the left-over monies that can be planned for investing to build wealth or perhaps count towards a savings goal or an emergency fund.

Try out MoneySmart’s Budget Planner.

Remember, the more informed you are about your financial position the smarter decisions you can make to afford the lifestyle you want later on in life.

 

4. Set some goals!

Now that you’re informed about what you own (assets), what you owe (liabilities or debt), how much money comes in (income) and how much goes out (expenses), it’s time to set some financial goals to best utilise the left-over money (surplus income or savings).

No matter the level of surplus income you may have, it’s a great idea to set goals that you can work towards reaching.

Here are some goals you can consider:

  • Savings goal – maybe for a deposit for your first home, family holiday trip, an education fund or getting an investment portfolio set up…..it’s endless what you can save for!
  • Financial education goal – get to know more about your super. It’s money your employer puts away for you, and how you invest it now can make a huge difference to how much money you’ll end up for your retirement. Is it best to put more into super or invest outside of super or make extra repayments on your home loan? Get informed and interested in financial knowledge!
  • Life goals – are you planning on getting married, starting a family, moving overseas to live or are you ready for retirement? There are plenty of life events or milestones that require planning and good financial advice.
  • Family protection goals – looking after your family is pretty important and getting a safety net put into place is definitely a goal worth setting & implementing.

 

5. Make the most of your superannuation (super)

Super is money your employer puts away for you to use for your retirement. What you do with your super now can make a difference later on. There are so many things you can do with super to help you build up a nest egg to match your retirement lifestyle plans.

You can top up (contribute extra amounts) your super, salary sacrifice (contribute directly from your salary before tax is applied) or make payments for your spouse to help their super balance grow.

If you have several super funds scattered everywhere, it might be more effective to have them rolled into one fund (consolidate) which makes it easier to manage and cost-effective.

Best to speak with your financial adviser to receive advice that is appropriate to your individual situation.

 

6. Investment Goals

If you’ve worked out you have some surplus income or savings you can do something with instead of having it sitting in your bank account, then creating an investment portfolio could be ideal.

It’s a great time to learn all there is to know about investing such as:

  • What is your investment risk profile?
  • What is asset allocation?
  • What can I invest in?
  • How long do I need to invest for?
  • What are the risks I need to know?
  • Is my money safe or guaranteed?
  • How much growth can I expect?
  • How much income can I receive from my investments?

Starting an investment portfolio to suit your needs and financial goals is an important step towards attaining financial security to lead to lifestyle choices to do what you want and when you want. It requires smart financial decisions, and one you want to consult with a financial adviser.

 

7. Create a financial safety buffer

Sometimes unexpected things occur that can throw your life into chaos, financially and personally. Things where accidents or injuries occur and you’re unable to work for awhile but your ongoing living expenses like your mortgage repayments and household utility bills continue to roll in without fail.

When faced with such emotional, mental and health concerns, it can quickly escalate to not only unravel your financial plans but cause undue stress and personal turmoil.

There are many ways you can protect yourself and your family against unexpected life events with carefully planned protection measures like personal insurance which can cover for loss of income due to sickness, injury or disability, and covers for life insurance as well.

Best to speak to a financial adviser who can advise you on the different types of cover and the levels of cover to seek that’s appropriate and relevant for your situation.

Be in control of your life, and your family’s safety and financial wellbeing!

 

8. Get a personalised financial future plan

You’re now better informed and more aware of your financial situation than ever before. You know about your financial position, understand your net cash flow situation, you’re thinking about some goals to set and you’re learning more about investment options and how to maximize your super.

Now, it’s time to get them written down so it can become your financial future planning roadmap which will help you to keep on track and motivate you to pursue the lifestyle you seek and crave for you and your family.

This is another great reason to chat with your financial adviser to get a personalised financial plan into place. A financial plan (Statement of Advice) is all about you, your goals and desires, your now and where you want to be within a set timeframe, and the how to achieve your goals. It also outlines some of the risks you need to be aware of, your expected outcomes backed with financial projections on income and growth expectations.

It’s your personal financial roadmap to help you get to where you want to be!

 

9. Get obsessed about your financial future

Who doesn’t want to be financially independent to do the things you want to in life? Well, now that you have your own roadmap to get you there, don’t stop talking about it.

Continue to think about your future, imagine the possibilities, believe in yourself and become truly focused and determined to get there!

The more you think about it, it fuels the desire and the hunger to reach the financial sweet spot. Don’t keep your plan to yourself. Talk to your family and friends about it, and most importantly check-in with your adviser to ensure the validity and currency of your plan.

As you reach certain milestones and experience certain life events your plan may require some tweaking and adjusting to make sure the plan is still relevant and realistic.

 

10. Surround yourself with smart people

To get ahead in life, it’s often more effective and easier when you wrap yourself with people who are smarter and more successful than you. It’s the wisdom, the ideas, the know-how and the experience you want to get more of so you can apply them to your own situation.

It’s like getting yourself a mentor or someone you can bounce ideas off, and learn from. It’s also someone who can point you in the right direction, guide you financially and help steer you to reach your financial and lifestyle goals.

Surround yourself with trusted professionals like accountants and financial advisers, and strike up a close enriching relationship to collectively guide and help each other out.

So now you have some financial resolutions to think about, pick and choose your top 3, and start your New Year with clarity, purpose and make it meaningful.

For more help on reaching your financial success, talk to a Dome Financial Adviser in Charlestown, Tamworth and Hunter Valley.

The information contained on this page is for discussion purposes only and is not intended to constitute financial product advice. It does not take into consideration any persons objectives, financial situation or needs. You should consider its appropriateness in light of your circumstances and consider seeking professional advice relevant to your individual before making a decision based on any information on this page.

Top 10 New Year Financial Resolutions

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Are you living the Great Australian Dream?

Are you living the Great Australian Dream?

Are you living the dream?

According to the FPA ‘Live the Dream’ 2017 National Research Report courtesy of www.moneyandlife.com.au/livethedream, Australians are fond of dreaming about their future and are optimistic in their ability to create the life they want.

4 in 5 Australians (77%) believe in their personal ability to create the life they want but only a small 23% of us are definitely or mostly living the dream.

Interestingly, Australians who are actually living the dream are twice as likely to seek  or have sought advice from a financial planner (66%) than those who are not living the dream (38%).

So what does living the dream mean?

DEFINING THE DREAM

Living the dream to Australians mean having the lifestyle of their choice.

To be able to lead the lifestyle of choice equates to affordability and having greater financial independence.

‘Australians in 2017 define the ‘Great Australian Dream’ as the ability to have the lifestyle of their choice, and to be able to create safety and security for their family, own a home, pursue hobbies, and free up time with those they love – all without fear of regret.’

What does the phrase ‘living the dream’ mean to you?

When asked this question Australians defined the following in order of importance:

  1. Having the lifestyle of my choice – 57%
  2. Having financial freedom and independence – 54%
  3. Having safety and security – 49%
  4. Owning a home – 41%
  5. Having a family – 41%
  6. Pursuing hobbies and interests – 40%
  7. Having no regrets – 38%
  8. Freeing up time with those I love – 38%
  9. Setting myself up financially for retirement – 37%
  10. Travelling the world – 36%
  11. Having a plan for the future – 29%
  12. Completing my bucket list – 21%
  13. Excelling in my current career – 21%
  14. Having an impact on my local community – 11%
  15. Pursuing a new career – 8%
  16. Having an impact globally – 8%

WHO ARE THE AUSTRALIANS LIVING THE DREAM?

With 1 in 4 Australians believing they are definitely or mostly ‘living the dream’ who are they and what has enabled them to achieve their dreams?

Strong Personal Habits

Australians living the dream are family oriented, spending more quality time with their family during the week than the average Australian.

They are five (5) times more likely to meditate or engage in spiritual activity.

Dream about the future

Australians living their dream life dream more about the future than others.

4 in 5 (82%) often or always dream about their future compared to just 61% of those who say they are not living the dream.

Plan ahead and stick to the plan

Australians who are living the dream are planners.

They are five (5) times more likely than the average Australian to plan and stick to the plans they have made (23% compared to 5%).

They are more likely to act quickly on their plans (71% compared to 41%), turning their vision for the future into reality.

High levels of self-belief

High self-belief correlates strongly with those who are living the dream.

Almost all Australians (96%) who are living the dream believe in their ability to create the life they want, compared to just 54% of those not living the dream.

Seek out advice from others

Australians who are living the dream make their financial decisions in consultation with others.

Those who are living the dream are nearly three (3) times more likely to seek advice from a financial planner when making financial decisions (24% compared to 9% of those note living the dream).

Nearly half (45%) are currently receiving or have received advice from a financial planner, compared to just 22% of those not living the dream.

Fewer regrets

Australians who believe they are living the dream are less likely to have regrets in life than those who are not living the dream life.

A quarter (26%) say they have no regrets at all.

Those that do have regrets mostly regret not saving enough (24%) or regret making poor decisions (19%).

Less financial stress

Australians who are living the dream have the lowest levels of financial stress of all Australians.

More than one in three (34%) are not at all stressed about their finances (compared to 11% of those not living the dream).

Just 9% are extremely stressed about their finances, which is true for 26% of those not living the dream.

So what’s the greatest block to living the dream?

Two of the three most significant factors that prevent us from living our dreams are financial.

Having a low bank balance is the biggest dream blocker.

Poor financial planning is a key regret.

One in five Australians believe that poor financial planning is one of their biggest financial regrets life so far (21%).

Research conducted in May 2017 showed that 79% of those who had received advice said their financial well-being had improved since engaging a financial planner (Core Data, FPA Brand Research, 2017).

For more help on ‘living the dream’, talk to a Dome Financial Adviser in Charlestown, Tamworth and Hunter Valley.

The information contained on this page is for discussion purposes only and is not intended to constitute financial product advice. It does not take into consideration any persons objectives, financial situation or needs. You should consider its appropriateness in light of your circumstances and consider seeking professional advice relevant to your individual before making a decision based on any information on this page.

Top 10 New Year Financial Resolutions

What are your financial New Year resolutions? With the new year, it's an opportune time to think about setting some financial goals for the year. Let's look at some of the Top 10 Financial Resolutions:   1.Know your 'now' situation Best way to start planning for...
Read More

Top 5 Stress-free Christmas Money Saving Hacks

Christmas is a wonderful time of the year, and for many of us it can also be quite stressful and hard hitting on your back pocket. Leading up to Christmas can be frantic and chaotic especially trying to battle the crowds to do last minute gift shopping, lining up...
Read More

Are you living the Great Australian Dream?

Are you living the dream? According to the FPA ‘Live the Dream’ 2017 National Research Report courtesy of www.moneyandlife.com.au/livethedream, Australians are fond of dreaming about their future and are optimistic in their ability to create the life they want. 4 in 5...
Read More

The power of persistence and financial success

“Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and...
Read More

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Read More

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Read More

Why should you care about financial planning?

Financial Planning is still an unknown topic for those who do not have a relationship with a financial planner, and many people still ignore the importance of planning for their financial security and future. So, let's break 'financial planning' down into easy...
Read More
The power of persistence and financial success

The power of persistence and financial success

“Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan Press On! has solved and always will solve the problems of the human race.” – Calvin Coolridge

If you know Ray Kroc then you’ll know how inspiring and motivating the power of persistence played to help transform Ray. Ray, a 52 year old milkshake maker appliance sales person flogging his product without much success to the man who built the mega-franchise chain of fast food burger operations known as McDonalds.

What made Ray Kroc so successful was his dogged persistence to never give up and to keep sweating as he famously quoted and repeatedly said to himself:

Luck is a dividend of sweat. The more you sweat, the luckier you get.

 

Ray Kroc wasn’t born wealthy. He was a middle aged struggling sales person who listened to motivational tapes and constantly pushed himself on, even during the hard times, and this ‘never give up’ attitude eventually paid off, and he achieved successes one can only dream off.

The Power of Persistence & Financial Success

 

Persistence is powerful indeed. It separates successful people from the not so successful people in terms of accomplishing goals, whether they are financial, life or values-based.

Persistence plays a huge role for financial planning clients as well.

Financial planning is not just for the wealthy but for everyone who has a goal or a dream they want to achieve. Or you may simply want to better your choice of lifestyle!


Persistence is what separates the achievers from the complacent types. It’s the difference between getting over the finish line to just taking off from the start line.

1.Persistence – What are you craving for badly?

Write down what you want to do, what you want to achieve or accomplish. It can be the small little things you tend to put off or the bigger life goals. Give yourself a reason or reasons to want to achieve something then go and get it done!

Use the power of persistence to get you through and be able to overcome any obstacles or challenges that may get in your way. Refuse to quit – you owe it to yourself!


2. Prepare for the Challenges

Collaborate with your adviser or support group and get a contingency plan set up. Arm yourself with the knowledge on how to successfully overcome any challenges you may face during the course of your journey.

Being prepared and ready for battle is far better than going into battle blindfolded.

The key is to not become overwhelmed with difficulty but to be prepared at all times, and to not be afraid to seek counsel from others who have done it before you! Along the way you may need help from others to help realise your dreams, and if the help comes your way, grab it and go on your way.

You may face failure, and this is OK but don’t let it knock you down. Use the persistence and the tenacity in you to get up and enjoy celebrating the milestones along the way.


3. Be flexible-minded

A plan is a guide to help navigate you to the end. It needs to be adaptable and flexible enough to be changed and reassessed.

Like going into battle, many last minute decisions are made to ensure its utmost success, and if you can’t be adept at changing the course of your actions at crucial moments then you’re setting yourself up for unnecessary hardship and an uphill battle.

Take advice, listen to others more experienced and wiser than you, and be prepared to be flexible and bendable at times when you need to be.

The easier your journey, the easier it is to stay focused and motivated.

4. Do It For Yourself

Light up the ‘fire in your belly’ and don’t extinguish the endorphin fueled feeling of satisfaction and accomplishment of ‘Yes, I did it!’

Be proud of your achievements and celebrate it. Don’t lose sight of your fighting spirit and use it to take you to the next level to achieve bigger and wider goals and ambitions.


5. Check-In & Take a Breath

Don’t forget to surface for some air every now and then. Check-in with your support network, discuss your experiences so far, how you felt, what you have learnt and share your stories with others to keep the momentum going and to ensure the course of action is relevant and effective.

Get inspired and inspire others along the way. When you share your journey with like-minded people with similar interests and goals, then it becomes more interesting, rewarding and easier to push each other along. It almost doesn’t become a chore but fun!

Persistence it seems is the one quality that can help you to overcome obstacles and adversity to guarantee success in reaching your goals, and realise the most meaningful moments in your life.

For more help on reaching your financial success, talk to a Dome Financial Adviser in Charlestown, Tamworth and Hunter Valley.

The information contained on this page is for discussion purposes only and is not intended to constitute financial product advice. It does not take into consideration any persons objectives, financial situation or needs. You should consider its appropriateness in light of your circumstances and consider seeking professional advice relevant to your individual before making a decision based on any information on this page.

 

Top 10 New Year Financial Resolutions

What are your financial New Year resolutions? With the new year, it's an opportune time to think about setting some financial goals for the year. Let's look at some of the Top 10 Financial Resolutions:   1.Know your 'now' situation Best way to start planning for...
Read More

Top 5 Stress-free Christmas Money Saving Hacks

Christmas is a wonderful time of the year, and for many of us it can also be quite stressful and hard hitting on your back pocket. Leading up to Christmas can be frantic and chaotic especially trying to battle the crowds to do last minute gift shopping, lining up...
Read More

Are you living the Great Australian Dream?

Are you living the dream? According to the FPA ‘Live the Dream’ 2017 National Research Report courtesy of www.moneyandlife.com.au/livethedream, Australians are fond of dreaming about their future and are optimistic in their ability to create the life they want. 4 in 5...
Read More

The power of persistence and financial success

“Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and...
Read More

Preparing for Retirement Must Knows and Dos

Major life events like nearing retirement triggers a need to get sound financial advice from a trusted financial adviser. If you're about to retire or wondering if you can afford to retire, don't think alone. At this crucial moment in your life, it's vital to talk...
Read More

Getting Divorced? Understand the many financial considerations.

Divorce is one of the most difficult things that a person can ever go through and this goes hand in hand with the need for proper financial planning. How you are going to proceed can have an effect on your financial standing in the near future. 5 Frequently Asked...
Read More

Can financial goals be achieved?

Maybe your goals are way too big, unrealistic or simply too stretched. With such big dreams to fulfil is it just too hard to reach them? This is what a Harvard psychologist Amy Cuddy, an expert on human behaviour and author of “Presence: Bringing Your Boldest Self to...
Read More

Why should you care about financial planning?

Financial Planning is still an unknown topic for those who do not have a relationship with a financial planner, and many people still ignore the importance of planning for their financial security and future. So, let's break 'financial planning' down into easy...
Read More
Can financial goals be achieved?

Can financial goals be achieved?

Maybe your goals are way too big, unrealistic or simply too stretched. With such big dreams to fulfil is it just too hard to reach them?

This is what a Harvard psychologist Amy Cuddy, an expert on human behaviour and author of “Presence: Bringing Your Boldest Self to Your Biggest Challenges” explains.  It is easier to aim to make it around the block than shoot for the stars, initially anyway.

A mistake most people make, Cuddy explains, is that, they ‘focus only on the outcome and not on the process.

Focus on the process rather than the outcome

This means it’s great to have a goal, and want to strive for the moon but you need to know the ‘how’ – what are the actions or steps required to reach your goals?

If you’re going from point A to point B, you basically need a road map to navigate your path to your end destination. Without such a map, you might lose your way, go the wrong long way or simply give up on starting your journey.

As Cuddy reveals, people get disappointed or feel deflated because of ‘unrealistic or poorly planned goals.’ She finds that people’s goals are ‘too big’ and ‘too distant’.

‘They require a million little steps in between, and each of those little steps is an opportunity to fail’.

Chunk down big goals into smaller ones

The smart approach to achieving goals whether they are financial or life goals, is to chunk down the big goals into bite sized easy to digest weekly or daily goals which are easier to achieve. By kicking through the smaller and frequent goals, you feel a sense of accomplishment which energises you to keep going to the end.

Similar to wanting to become a marathon runner from not being able to run, it’s easier and better to start a training regime on a daily basis leading up to your marathon day rather than attempt to run 42kms straight away. You’re setting yourself up for failure if you don’t plan or train for this major fitness goal.

Work with a professional ‘coach’

This is no difference when you plan for financial goals and retirement lifestyle goals. You need a road map to help you get there. Without a process or the know-how, you might not get there at all or lose out on opportunities. You might also seek advice from a professional adviser to help draft up a personalised financial plan similar to getting a personal fitness trainer who maps out a fitness regime to help you run your first marathon.

Having a goal and wanting to achieve them is fantastic but ensure you find the right and smart way of achieving them.

Get a plan, seek guidance from your adviser and tick off the check points on your ‘financial road-map’ until you arrive at your desired destination.

For more help on reaching your financial goals, talk to a Dome Financial Adviser!

The information contained on this page is for discussion purposes only and is not intended to constitute financial product advice. It does not take into consideration any persons objectives, financial situation or needs. You should consider its appropriateness in light of your circumstances and consider seeking professional advice relevant to your individual before making a decision based on any information on this page.