New Financial Year wealth tips

From

Steven Korner

Eliminate personal debt

Australia has some of the highest personal debt levels in the world and it is only increasing. Some of these debts are incurring interest at over 20%. If you pay down this debt it means you are receiving a guaranteed 20% return on your money.

Take control of your super

Superannuation is your nest egg for retirement. Too many of us have super spread across multiple funds. Consequently, this means that unnecessary fees are diminishing our future. This is the financial year to consolidate your super and take back what is yours.

Review your home loan

Interest rates are currently at record lows, despite this, many banks are still charging their customers an arm and a leg in interest. Speak to a mortgage broker to take advantage of the highly competitive interest rates some banks are offering. If you have a $500,000 loan and you decrease your interest rate by only 1% you will save approximately $5,000 per year in interest payments.

Construct a savings plan

Sit down and determine how much money you want to save this financial year. Now, divide this number by 52 weeks to create your weekly savings goal. Think about things you could easily substitute out of your life in order to achieve this. For example, if you were to stop buying your morning coffee this financial year you could save yourself upward of $1,400.

Plan and begin to achieve your financial targets

Most of us fail our financial year’s resolutions because we do not keep ourselves accountable to our goals. A Harvard University study found that only 3% of students had both written goals and concrete plans. However, this 3% were making ten times more than the rest of the 97% of the class after 10 years. Schedule yourself one hour to write down your goals and how you are going to achieve them. Revise this every six month and the results will speak for themselves.

By Steven Korner, Financial Adviser

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