Whether you run a business or work as an employee, you need to set yourself some financial goals to make sure you get ahead in life. It is a great feeling to achieve your goals, no matter how big or small they are. Here are a few goals that some people are setting.
Start my own business:
There are so many people out there with great ideas. Many of these ideas don’t ever amount to anything bu “What-ifs”. Why not try running your own business? You may not wish to quit your job because of the financial security, but you may look to just run the business after your normal working hours and test the market for a while. If you do start your own business, you need to make sure you go in with a plan. Are you sitting on a great idea?
Write a business plan
Many small business owners have never sit down and written a business plan (or revise their existing one). A business plan should focus on what you want to achieve and then steps about how you can get there. You wouldn’t build a house without a plan and a business is no different. There is however no point writing a plan just for the sake of writing one. Your plan needs to include strategies to get you where you want to go. Have you written a plan for your business?
Set myself a budget
It seems to be that no matter how much money you earn, how many pay rises you get, you don’t seem to save any additional money. You need to set yourself a budget and work out where your money is being spent. There are some great tools around to help you do this. Where do you think you could save?
Contribute to superannuation
It is a good idea to consider putting more money into Superannuation so you can retire wealthy. After you have completed your budget, you should consider a tax effective strategy of salary sacrificing additional money into super. Every little bit counts, and when that is compounding over your entire working life, even small amount, like $2 per day can make a massive impact. Would you forgo a coffee every second day for a wealthier retirement?
Ask for a pay rise
Do you think you deserve a pay rise? Have you asked for one? Before you go and ask your boss for a pay rise you need to be sure you are prepared. Make sure you can clearly articulate why you deserve the pay rise and quantify how much you want and you are more likely to receive it. Imagine you are in your boss’ shoes and 2 employees come to you asking for a pay rise. If one said “I have worked hard, I think I deserve a pay rise” whilst the other came to you said “I have exceeded by budget by an average of $12,000 the last 3 years, I believe I deserve a pay rise of $2,000” who would you be more likely to give a pay rise to?
Reduce my home loan
Paying off the loan faster may not be just a matter of making additional repayments each month. You may be able to reduce it by paying fortnightly instead of monthly (making 2 extra payments per year). Have you considered switching banks? You may be able to reduce your interest rate and keep your repayments the same, knocking off years in repayments. Have you considered talking to a broker about your home loan?
Review my insurances
You spend quite a bit each year protecting your assets. Home insurance, car insurance, income protection, life insurance, etc. but how often do you review these? If you get a renewal notice, do you compare prices before renewing or just log on and pay by bpay? You may be paying too much, shop around for general insurance. When it comes to personal risk insurance, such as a life or income protection insurance, you may be paying for a product that is not right for you. Do you know what exclusions are on your personal risk insurances? How long will you be off work before your income protection kicks in? Should you chat to a financial planner about your risk insurance?
The new financial year is a great time to take a look at your financial goals. We have experts in house that can help you with the above, so please do not hesitate to contact us for assistance. Feel free to call us on (03) 8712 3256 for further information.
