Managing finances and setting a financial plan are easy to put off until tomorrow. Life is busy, and right when you make time to sit down and sort it out, bang, something comes up. “I’ll park this for tomorrow.” What happens tomorrow? Something else gets in the way, and the cycle continues. All the while, your finances become so messy that it feels like there is no way out.
It’s a frustrating hamster wheel. You’re working hard and making decent money, but you can’t save or think about retirement and investing now for your future. “I can’t even see past the next few weeks”. You think to yourself.
If this is you, you’re not alone. At Step Up Financial, now AFPG, we talk to individuals, couples, and families weekly who find themselves in this position. They’re in the prime of their life, but where is the money going, and how will they be able to retire and enjoy it? It feels like a tangle of knots that can’t be untangled.
Are my finances fixable?
There is always a solution, and our team has not found a problem yet that it couldn’t solve. Many clients support their families, but they live week to week and accumulate more debt as the months go on. It is a common scenario, and the current cost of living and the past spike in home loan interest rates have amplified the issue. One certainty is that the situation will not resolve itself, and not acting now only dilutes your current and future financial potential.
A qualified financial planner will clear the air and set you on a path where your finances are fixable, you have peace of mind, and can look to the future with renewed enthusiasm.
What does it look like
Let’s not sugarcoat it. It will take trust and discipline to get you on track. This doesn’t mean your life will be under the microscope and you’re jailed to inflexible and draconian rules. But it will take setting a plan, making sacrifices for the greater good, and sticking to a process.
“There is always a solution, and our team has not found a problem yet that it couldn’t solve.”
Firstly, our specialist will undertake an initial assessment. They’ll look at cash in and cash out, and where the debt is accumulating, and create a short-term plan to stem the bleeding. This generally involves a pause or reduction in discretionary spending, creating a realistic budget that includes paying down high interest debt, such as credit cards and personal loans. They’ll help you create a household budget that covers essentials and debt clearing and enables a routine where you can keep a comfortable lifestyle.
Secondly, we work on setting a target for emergencies. The Emergency Fund aims to save $1000-$5000 to cover emergency expenses. This replaces using high-interest credit, which is a recipe for financial hardship. With an educated and balanced budget in place, you’d be surprised how achievable this is.
Next step: Mid-term goals, a 1-5 year financial plan. This phase is where the fun in finances starts to take shape. The goal here is to ensure
- A funded emergency slush fund sitting in a high interest account with between 3-6 months of expenses covered
- Insurances covered, including medical, life, car, home, and income protection
- If you have children, educational and recreational expenses are under control
- Regular contributions to a retirement fund. It doesn’t need to be a lot, but adding more at this stage compounds significantly.
When these milestones have been achieved, a lifestyle upgrade is possible. Regular reviews must be undertaken. Exploring success and challenges is necessary to keep the strategy working and make fine-tuned adjustments when required.
“Firstly, our financial specialist will undertake an initial assessment. They’ll look at cash in and cash out, and where the debt is accumulating.”
The long-term phase: Over the past few years, you’ve learnt how to manage your money successfully and the pitfalls of high-interest credit. Understanding your risk tolerance and living within your means provides welcome clarity. Now it is time to build wealth through a range of strategies.
We’ll help you create a Diversified investment portfolio with a mix of superannuation, property, shares, EFT, and SMSF. There are a number of investment levers that we can tailor to your goals, risk tolerance, and circumstances.
You’re not alone
“It is a misconception to think you only need a financial planner when you have plenty of money… Acting now may be why YOU have plenty of money in the future.”
Financial planners are problem solvers and financial map makers. We’re here to ease the growing pains of financial management and set our clients up for long-term financial health. It is not unusual to find yourself in a financial quandary, particularly when the demands of life accelerate and simply staying afloat is exhausting. You’re not alone and help is close by.
It is a misconception to think you only need a financial planner when you have plenty of money and want advice on what to do with it. Acting now and working with a financial planner may be why YOU have plenty of money and need advice on what to do with it in the years to come.
We can help
Step Up Financial Group, now AFPG, is a team of qualified financial specialists. We help hundreds of Australians create financial stability and resilience every year while building toward a confident retirement.
Contact us today for experienced, compassionate, and professional financial planning advice.