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.
Track your expenses
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 expected budget expenses and then match them against actual expenses. We can do this using the same categories as “Track Your Spend” or the categories in Financial Mappers.
Rising interest rates
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 an excellent 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.
If you don’t have a plan, you plan to fail.Benjamin Franklin
No one should want to fail when it comes to managing their money.
The first step should be to make a New Financial Year Resolution – Start a Financial Plan.
Please watch this video, if you need convincing.
Are you ready to start your Financial Plan?
Glenis Phillips SF Fin – Designer of Financial Mappers