Need A Financial Refresh? We Got You Covered.
The new year is a fantastic time to get your finances in order. Call it a financial check-up to start the year. Read on for free tips on how to save buckets.
Written by Victoria Kent, Senior Investment Specialist
Photo by Markus Spiske on Unsplash
This information does not take into account your personal objectives, financial situation or needs. You should consider if the relevant investment is appropriate having regard to your own objectives, financial situation and needs.
2022 is just around the corner – why not set some new financial goals?
Perhaps you want to save for a holiday now that we can travel again (hooray!). Or maybe you want to use the extra $$ to pay off your credit card debt once and for all.
Here are 5 quick tips to refresh your financial wellbeing and set 2022 up for success:
1. Check your super
Even though you can’t spend the money today, it’s still yours; and the choices you make now about your super will have a huge impact on your future.
The amount of super you retire with can dictate your lifestyle in retirement i.e. whether you will have enough to live modestly or comfortably. So, do your future self a favour by diving into your current super situation.
Here are some questions to help you focus:
How much super do you have? Do you know your current balance? Are you on track for the future you want?
Where is your super? Do you have multiple accounts? If so, you may be paying multiple sets of fees. It’s 'super' easy to consolidate your accounts through your MyGov account, if you happen to have more than one fund lying around.
What super product are you invested in? What are the fees and how has it performed? Is this comparable to other funds? Perhaps you’re in a 'dud' fund like the ones recently scolded by the regulator. If you are, you should have received an email or letter about it, so dig into that in(mail)box.
How is your money being invested (asset allocation) and is it appropriate for your risk profile, age and circumstances?
Does your super fund match your values? Are they transparent about what they invest in?
Do you pay for insurance through your super, and if so, do you want to be? Is the level of cover appropriate? Perhaps you have *gasp* multiple super accounts with insurance cover and therefore paying multiple sets of insurance fees?
2. Data data data
As the saying goes: "there are exactly two ways to save money; either by spending less or spending smarter."
But do you have a clear picture of where your money is going? Apps like Pocketbook can automatically categorise your spending so you know where it’s going. Best of all, it's free.
3. Time to get serious?
Perhaps like me, you are a fan of outsourcing the hard stuff. If so, 2022 is the year to engage a financial adviser or planner.
They can assist you with your goals and tailor the advice to suit your circumstances. Most advisers will offer an initial discussion for free so you can understand what they are offering before you commit to anything.
Moneysmart does a good overview, and don't be put off by all that royal commission stuff. Since then, laws and educational requirements for advisers have been strengthened and dodgy commissions have been reined in.
4. Discretionary investing
Thinking about investing but don't know where to start? Or think investing is only for those with deep pockets and Wall Street connections?
Fintech award finalist AtlasTrend has democratised investing, and anyone can invest in professionally managed funds in just a few clicks.
You don't need squillions in the bank, just $1,000 lump sum or $100 monthly to get your investment portfolio up and running.
5. Boost your financial education
Make 2022 the year you finally understand what Alan Kohler is talking about! Improving your financial literacy will help you both personally and professionally, and it's never been easier.
If you subscribe to our blog/newsletter, we are constantly generating content to enhance your financial education and provide you with market updates.
For podcast fans there are some great money wise options like the Australian Finance Podcast, She's on the Money, or My Millennial Money.
A good follow on Instagram is @moneywithjess. She also has a free newsletter crammed with budgeting tips.