You can do these things to improve your financial life:

Reduce Credit Card Debt

Why this is important

You get charged around 20% interest on credit card balances. Unpaid credit card balances are the fastest way to go backwards financially.

What action you should take

Focus on reducing your Credit Card balances to NIL before you do anything else, and then keep your spending down so you can repay your credit card balance each month.

Separate Bank Accounts

Why this is important

It’s too hard to know where you are financially with just one bank account. Using 3 different accounts to keep your Bills money and your Cash Savings separate from your Everyday Account helps you tell at a glance what you can afford to spend each week

What action you should take

Set up new bank accounts so you have an Everyday Account, a Bills Account, and a Cash Savings Account

Set up auto bank transfers

Why this is important

Pay yourself first! Have your bills and cash savings covered automatically – and then spend what’s left in your everyday account. So easy to keep on track by this one simply strategy

What action you should take

Set up auto transfers using internet banking to transfer a set % of your wages each week into your Bills Account and into your Cash Saving Account

Create a cash reserve

Why this is important

Aim to create a cash reserve to last you for 3 months. Most income protection insurance takes 1 to 3 months to start up – so you’ll need a cash reserve if anything stops you working.

What action you should take

Set up a Cash Savings account separate to your everyday account. Try to put aside into this account 5% of your weekly pay and build up a 3 month cash reserve.

Lower Home Loan Interest Rate

Why this is important

Your bank won’t offer you an interest rate reduction on your loan unless you ask for it. So… ask for it! This could save you thousands of $ each year.

What action you should take

Contact your bank and ask for a reduction in your home loan interest rate. Quote a lower comparative interest rate from another bank and tell your bank if they don’t match or better it you’ll consider switching your home loan to the other bank

Be tax Effective

Why this is important

Many people pay tax they shouldn’t have to. Being smart about where you keep your cash savings can reduce your overall family tax payable

What action you should take

Move your family savings into either a home loan offset account (you won’t be taxed on interest received) or into the name of a lower taxed spouse/partner to reduce your tax.

Find your important documents

Why this is important

In an emergency, can you or your spouse/partner or trusted family members find your important legal documents? Where are the originals stored? Who has copies?

What action you should take

Know where all your original important documents are, including your Will, Enduring Power of Attorney, Advance Health Directive, etc.

Plus:

Scan and send a copy of these documents to your Accountant

The Journey2 Team can assist you (along with our referral partners) with the following tips to improve your financial life:

Keep Your Family Wealth in Your “Bloodline”

Why this is important

If your kids are married / in a relationship and it ends, any family wealth they inherit from you may end up going to another family and your kids miss out. We can help to set up a structure that keeps your family wealth in your family “bloodline” and protects everything you’ve worked so hard for.

What action you should take

Meet with us and our recommended Estate Planning Lawyer to discuss your options for your unique family circumstances. We will then prepare a Letter of Advice for you which includes your options, diagrams, actions and prices to protect your family wealth

Set up Successor Directors for your Companies

Why this is important

If you die or are incapacitated – without the right documents in place your single director company can’t operate, and your family’s position in a multi director company may not be properly represented.

What action you should take

Request us to prepare a “Successor Director” pack of documents for you to sign now to nominate your successor director to take your place, if required.

Protect your Family Home Equity

Why this is important

You’ve built up equity in your home – now it’s time to protect it using a “Family Protection Trust”. This can be done without triggering stamp duty and Capital Gains Tax.

What action you should take

Request a Letter of Advice from us to explain how the equity in your family home (and other investment properties) can be given the maximum protection available.

Update Your Will

Why this is important

If you die without a Will – the Public Trustee will charge your estate (could be up to 5%) and your wealth may not go where you want it to.

What action you should take

Request us to facilitate the preparation of a new Will for you with our recommended Estate Planning Lawyers.

Update your Enduring Power of Attorney

Why this is important

If you are unconscious or incapacitated and cannot make decisions – you need someone who can make financial decisions on your behalf.

What action you should take

Request us to facilitate the preparation of a new Enduring Power of Attorney for you with our recommended Estate Planning Lawyers.

Update your Advance Health Directive

Why this is important

If you are unconscious or incapacitated and cannot make decisions – you need someone who can make financial decisions on your behalf.

What action you should take

Request us to facilitate the preparation of a new Advance Health Directive for you with our recommended Estate Planning Lawyers.

Debt Reduction + Recycling

Why this is important

This allows you to focus on reducing your home loan and make investments at the same time – with the huge advantage of turning non tax deductible debt into tax deductible debt!

What action you should take

Request us to work with your bank / loan broker to restructure your loans so they can be more tax effective for you and start a debt recycling program.

Protect Your Family Lifestyle

Why this is important

Everyone insures their house and car. Shouldn’t you also insure your income and your life so that if anything bad happens to you, your family can still live the lifestyle you want them to live?

What action you should take

Request us to work with your financial advisor to calculate your personal insurance needs and then arrange the most appropriate insurance for you – including income protection, life cover and trauma cover.

Make your Superannuation Work for You

Why this is important

Most people never look at their super and then find after many years that being in a “Balanced” default option has resulted in a much smaller balance than they should have had.

What action you should take

Request your financial advisor to give you a Statement of Advice with a review and recommendations for your superannuation.

What is Your Target Balance for Retirement?

Why this is important

When can you afford to stop working? How much per year can you look forward to spending in retirement? What actions can you take NOW to be able to spend more in retirement?

What action you should take

Request us to prepare a “Freedom Plan” report which gives you a graphical report of what you’ll need to have in superannuation and investments to fund a great retirement.