How is your Financial Fitness???
Written and accurate as at: Jul 24, 2023 Current Stats & Facts
What is your family’s Financial Fitness Score??
Physical fitness is thrown in our face daily by all sorts of media. We all know what physical fitness looks like. We’ve all got some idea of what’s required to get fit. What does financial fitness look like? What’s required to get financial fit?
Financial fitness means different things to different groups of people but there are some fundamental goals everyone should aspire to. Wage earners with no kids should ensure they at least have a Will, Power of Attorney, some form of Income Protection insurance and double check their existing super is reasonable and has the right investment and insurance options. If you have a home loan you should also review it every 3 years to ensure your interest rate and fees are still competitive. Also review the strategies you’re using for fast tracking repayment (like offset and redraw accounts) are the best methods available. If you’re within 15 years of retirement you should also be taking more interest in your super and retirement planning and formally reviewing if you’re on track every couple of years. If you’re already retired you need to keep abreast of Centrelink rules, know how long your super pension will last at your current drawing rate and ensure the investments under your super pension are set up to protect you when there’s a big crash in investment markets.
Self-employed people need to consider the above for personal financial fitness plus ensure their business is financial fit. This involves looking inside the business at whether you need some independent support or accountability to ensure you have the important things in place for your business. These may include a practical Business Plan, Marketing Plan and a structured meeting program to review performance and provide accountability for tasks getting done. We all get to busy working IN our business and overlook making time to working ON our business. You also need to consider your retirement plans, will your business or its sale fund your retirement or do you need to be building wealth separately?
At Eclipse we help all sorts of clients with these issues. A simple DIY first step is to take our Financial Fitness survey from the front page of our website, which takes 10 minutes. You will then receive your Financial Fitness Score and Personalised Report highlighting issues you should consider. It’s a simple starting point and it’s free!
Coaches and Personal Trainers help build physical fitness. Would a Financial Coach help you build your financial fitness?
For a free consultation on these or any other financial matters contact Eclipse Financial Planning on 1300 857359 today or visit www.eclipsefp.com.au .
