With millions of people across the country struggling to keep pace with the rising cost of living, it’s no wonder why many people are looking to the New Year as a fresh financial start. As 2017 approaches, it is the ideal time to ensure preparedness for what’s coming. Whether the goal is to buy a home, start a new business or start a family, financial readiness is important. Below, families can learn several tips to improve your finances in 2017 and beyond.
According to a recent survey, over 60% of respondents could not answer basic questions of financial literacy. Use downtime during a long commute to listen to financial podcasts and audiobooks about personal finance, and reap the benefits of increased financial literacy.
A livable budget is the cornerstone of successful family finances. If there’s no 2017 spending plan, it’s time to set one that considers all variable and fixed expenses. Smartphone apps are an easy way to remain accountable because they track spending across accounts while flagging fraudulent transactions and errors.
If financial planning goals weren’t met during 2016, don’t fret. Start 2017 planning early by setting up an automatic debit from each week’s pay, that goes into a tax-deferred retirement account. It’s a good idea to enroll in an employer-sponsored retirement plan, and to contribute as much as possible, especially if the employer matches contributions. For some it might also be worth consering a Self Managed Super Fund to start building welth and prepare for retirement.
If the high interest of loans and credit card debt are putting a kink in the family’s finances, debt consolidation may be a viable solution. Borrowers with good credit can use low-interest, unsecured personal loans to pay off higher-interest debt. While consolidation does not make debt go away, it reduces the cost of paying it off.
While sound personal finances are important, mistakes happen. Simply correct them quickly and recommit to wealth building in 2017. By staying focused on goals and making steady progress, families can move toward a prosperous future.
Paul Baggetta is the Founder & Principal of Baggetta & Co. Paul Baggetta has been a Taxation Accountant for over 36 years, a Financial Planner for over 18 years and in 1993 qualified as a Real Estate Licensee, holding a Triennial Certificate (currently not trading), and operated his own Real Estate business for property investment clients for over 5 years as a second business.
Financial planning services provided by Paul Baggetta as an Authorised Representative (No. 261469) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969. Australian Financial Services License No. 223135.
Taxation & Accounting services provided by Paul Baggetta as a Registered Tax Agent (No.61487008) and is a Member of SMSF Association, IPA & NTAA.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
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