New Financial Year Resolution
Make a Financial Plan
Preparing your tax return should turn your attention to the state of your finances. Now is a good time to make a new financial resolution – Start a Financial Plan.
Most people put off doing their tax returns. You will find doing your tax return now rather than at the deadline date will make the process easier. Your expenses will be fresh in your mind and hopefully you can still find all those receipts. As most invoices are sent by email, it is now relatively easy to save the costs in a folder. I recommend you date them by yyyy-mm-dd and put them into folders for your various expense types. You are likely to save money from your accountant if you can present all your expenses in an orderly fashion.
ASIC provides a free “Track Your Spend App” so you can keep a record of all your expenses while you are on the move. If you are not good at budgeting, this is the perfect way to keep your spending impulses in check.
With Financial Mappers, you can even log your anticipated budget expenses and then match them against actual expenses. This can be done using the same categories as “Track Your Spend” or the categories in Financial Mappers.
Everyone should have a financial plan, even if it is as simple as saving a set amount each month or making additional payments to your loans. The RBA indicated that interest rates will rise until Inflation is brought back to the target range of 2%-3%. Currently, they are predicting the CPI will rise from 5% to over 7%.
Now is a very good time to calculate the changes in cash flow due to loan interest rate rises by starting a Financial Plan. Using the Loan Modulator, you can compare the before and after changes in loan payments as interest rates rise.
Benjamin Franklin said: “If you don’t have a plan, you plan to fail”. No one should want to fail when to comes to managing their money.
The first step should be to make a New Financial Year Resolution – Start a Financial Plan.
Find out Why you need a Financial Plan.
Glenis Phillips SF Fin – Designer of Financial Mappers
Disclaimer: Financial Mappers does not have an Australian Financial Services License, does not offer financial planning advice and does not recommend financial products.