Just as regular medical checkups keep our bodies in peak condition, a routine ‘end-of-year financial checkup’ is the prescription for a healthy financial future. Think of it as an investigative session where you assess, diagnose and secure your monetary health. As the new year approaches, there is no better time to put on your financial stethoscope and ensure you’re in good shape.
At Step Up Financial, we specialise in helping you take control of your financial situation. It’s a five-step process, but the first two steps, uncover and strategise, are critical in evaluating your financial position, gaining some clarity and then reframing your mindset in order to achieve your goals. They also form the basis of a good end-of-year financial checkup.
Uncovering who you are
For a comprehensive outcome, you need to know your why. Just as we start our introductory sessions with a deep dive into your goals, dreams and aspirations, you need to get a clear picture of who you are and where you’d like to be.
Once you’ve established your goals, review your budget – including income and expenses for the year – and identify areas where you overspent or feel there’s room for improvement. Adjust your budget for 2024 to accommodate those changes.
An important step in this review is to assess your debt and develop a plan to reduce or eliminate high-interest debt.
Do you have an investment strategy? Now is an opportune time to gauge its performance and seek advice if you haven’t achieved the desired outcomes. Ensure you are optimising retirement contributions and superannuation and leveraging tax-effective strategies.
Protecting your financial security
Having worked hard to build your life, wealth and family, it’s crucial to protect them. Given the importance of insurance, it’s important to review and update your policies, including health, life and home insurance, to align with any changes in your circumstances.
Similarly, consider your emergency savings fund. Is it sufficient to cover three to six months of living expenses?
Make adjustments if necessary to meet your current financial situation. Life is unpredictable, and being proactive is preferable to reacting when unexpected events occur.
Anticipate significant expenses you may encounter in 2024, such as holidays, home improvements or replacing key appliances. Devise a plan to manage these costs without jeopardising your financial stability.
Now, strategise for 2024
At Step Up Financial, we assess your financial situation by understanding your goals, aspirations, cash flow, assets, desired timeframe, risk profile and investment attitude. From there, we craft a personalised strategy to guide you towards your financial objectives.
No matter what stage you’re at, whether accumulating wealth, securing your financial future or funding retirement, we can craft a strategy to support your journey.
Clients typically leave their initial consultation with confidence and peace of mind, empowered with a clear grasp of their financial standing and the path forward. That’s the impact of a financial checkup.
Always finish an end-of-year financial checkup by setting goals for the new year. Make them specific, measurable, achievable, relevant and set a realistic timeline to accomplish them.
Seeking professional personal finance and retirement planning advice is valuable at any life stage or time during the year. However, the holiday season is an excellent time to ensure you’re on the right track.
Contact Step Up Financial to plan your financial and retirement strategy with skill and patience.