5 tips for taking control of your finances

We have been incredibly busy over the past few months. The rate of disruption since mid-March has been overwhelming for many of our clients. With the continuing threat of the virus, we have all been navigating considerable change and upheaval.

Never before has it been so important that we focus on the things that we can control. It is time to take stock of your financial situation and look at proactive ways to manage this uncertainty.

As your financial adviser, we will continue to work with you to ensure that you make smart decisions with your money and provide you with the peace of mind that comes from having an expert on your side.

Here are 5 easy tips to take control of your finances:

  1. Budget…the “dirty” word. There has never been a more important time to become more aware of your finances. This doesn’t mean you have to manage a massive spreadsheet with every expense. However, it does mean being more aware of how you can curb spending that is putting your financial well-being at risk.
  2. If there is assistance, take it. Take stock of your current fixed expenses and see if there are opportunities to lighten the load. Many utilities, insurance, and other financial service providers are offering various levels of Covid-19 relief.
  3. Consider doing your tax return ASAP! Where your income was affected at the end of the 2019/20 financial year, you may find that you are entitled to a larger tax return than you would ordinarily receive. It is well worth discussing with your tax agent.
  4. Review your debt. Not all debt is equal. Spend the time to look at your current credit card, buy now-pay later, mortgage and other debt. Which has the lowest interest rate? Is it possible to roll debt into this lower interest facility?
  5. Superannuation withdrawals and mortgage pauses should be a last resort. Of course, the ability to access up to $20,000 of your superannuation in this and last financial year, could potentially be the lifeline that helps you to survive the next few months. However, early super withdrawal will have a long-term impact on your retirement savings. A $20,000 superannuation withdrawal could mean the difference of $55,603 at retirement for a 40-year-old with an $80,000 balance*

Putting your mortgage on hold could take the pressure off for a short period of time. Please be aware that your interest will continue to accrue during this period, and once you re-start your mortgage, your repayments will be increased to reflect these continued interest charges. Some banks are offering to extend the loan period.

We are here for you. We are currently meeting with our clients virtually. If you would like to book in a time to discuss how you can take control of your finances, or simply for a review of your personal situation, please contact us.

Source: www.canstar.com.au – 21/05/2020

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