The start of a New Year is always a good time to consider how you can correct past mistakes, particularly when it comes to money management. One of the most significant ways to better manage money is to have a sound debt management plan.
Yesterday, 23 January 2024, Annie Kane of Mortgage Business, wrote the article “1 in 5 cutting back to pay down mortgage”. NAB’s Economic Q4 Consumer Sentiment said that consumers have started to prioritize paying down debt.
With interest rates tipped to rise further, consumers should be concerned about how to manage this increased cost. From 1 July 2024, all consumers will have a significant tax cut, although the exact details are now under a cloud. The government seems to be posturing to increase the tax-free threshold, but reduce the threshold from $200,000 for high-income earners.
If the legislated tax cuts are delivered, it is estimated that a person earning $150,000 will save about $4,000 a year in tax. The tax savings are greater as you earn more money. For more detailed information visit the website for the Tax Institute.
Rather than squander these tax savings, why not decide now what is the best way for you to use this money?
Your action plan should consider:
- Living Expenses
- Debt Reduction
- Saving for Retirement
Financial Mappers is cashflow modelling software which is the perfect software to let you make a long-term financial plan.
Watch this video to understand the importance of starting a financial plan now.
Glenis Phillips SF Fin – Designer of Financial Mappers and Advice Online
Further Reading
- Get Debt Under Control (MoneySmart)
- Deal with Debt (Services Australia)
Disclaimer: Financial Mappers does not have an Australian Services License, does not offer financial planning advice, and does not recommend financial products.
