How to check your financial health
Just like you’d go for a regular health check-up, it’s worth giving your finances a regular check to spot issues early, stay on track and feel more confident about your money.
Here are some ways to keep your finances in good shape:
1. Review your budget¹
Start with the basics: what’s coming in and what’s going out? When you track your income and expenses for at least a month, you can make sure you are not spending more than you earn. Once you have a clear idea of where you stand, you can see where you can afford to splurge a little, and where you need to cut back.
2. Check your insurance²
Life has a way of surprising us and sometimes those surprises aren’t the good ones. Life insurance – like death cover, income protection, total and permanent disability (TPD) and critical illness insurance, can protect you and your family from financial stress if something unexpected happens. If you already have cover, it’s a good idea to review it at certain life milestones to make sure your cover matches your needs.
3. Look at your superannuation³
Your super might feel like a ‘future you’ problem, but small changes now can make a huge difference later. Check your current balance, your investment options and your fees. Are your contributions on track to give you the retirement lifestyle you want? You can use an online calculator, such as the free one offered by Moneysmart, to check and consider whether making extra contributions now could pay off down the line.
4. Manage your debt⁴
Debt can be a useful tool, but it can also eat away at your financial wellbeing. It’s a good idea to list all your debts, credit cards, personal loans, mortgage, and note the interest rates.
5. Update your estate plan⁵
Estate planning isn’t just for the wealthy, it’s for anyone who wants to make life easier for the people they leave behind. Make sure you have a valid will, review your superannuation and life insurance beneficiary nominations, and consider whether you need powers of attorney in place. It’s a good idea to keep these documents current so your loved ones understand your wishes, and the law honours them.
Final Thoughts
Financial health is about awareness and action. By checking in on your cash flow, insurance, super, debt and estate plan, you give yourself the power to make informed decisions and put yourself in a position to adapt when life changes. If you would like help to keep your finances in check and make a plan to use your money to your best advantage, get in touch.
This information has been prepared for use by licensed advisers in their professional capacity only and is not intended to be used by clients to make a decision. Any financial product advice is general in nature only and does not take into account any person’s objectives, financial situation or needs. Before acting on it, the appropriateness of the advice for any person should be considered, having regard to those factors. Persons deciding whether to acquire or continue to hold life insurance issued by TAL Life should consider the relevant Product Disclosure Statement (PDS). The Target Market Determination (TMD) for the product (where applicable) is also available.
References:
¹ https://moneysmart.gov.au/budgeting/how-to-do-a-budget
² https://www.finder.com.au/life-insurance/personal-insurance
⁵ https://moneysmart.gov.au/manage-your-money-in-retirement/ get-help-in-retirement/wills-and-powers-of-attorney
Your Vision Financial Solutions Pty Ltd ABN 64 650 296 478 and its Advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. This article has been prepared without taking into account your personal objectives, financial situation or needs.