In this blog we’ll look at proactive ways you can begin to implement a savings plan, which will be beneficial for you and your families’ long term financial management.
In particular, we’ll discuss debt consolidation, choosing the right insurance cover, tips for living off one income and making smart choices for retirement.
Consolidate your debt
An important step in organising personal finance is to consolidate debt. If you have multiple credit cards and personal loans, consolidate these into one. You are likely to be better off paying one combined loan, with a single interest rate, rather than many loans with different interest rates. Debt consolidation makes managing your money easier, as you won’t be juggling multiple payments each month. It will give you a better understanding of what money is coming out of your accounts, allowing you to better prioritise your spending. Check out our blog on debt consolidation
Have the right insurance in place
A good personal finance practice is having the right insurance in place, as well as the appropriate level of cover. You don’t want to risk being under insured. You can use the CGU insurance calculator to check that you are insuring your assets for the correct amount.
Ensuring your home and contents and car insurance policies are up to date is another good practice to keep in the habit of. Your current insurer is likely to email you or send you a copy of your policy when it is due for renewal. Use this time to compare policies online for the best value. Protect the assets you have to avoid being out of pocket in case of an incident or accident. Fill out our online form to get a quote for insurance through us.
Securing your information
Having all of your important documents in one place is great for financial management and crucial to be able to access them in an emergency. Important documents include insurance policies, wills, birth certificates, passports, as well as investment and super documentation. Keeping a hard copy in a home safe or safety deposit box is a good idea, you can always keep digital copies on an external hard drive or in a cloud based program, such as Google Drive.
Live on one income where possible
A good savings plan will teach you to regularly put money away in case of emergency or when there are changes happening within your family. Good examples of this are when someone is off work due to illness or injury or if you are starting a family. Practice living on one income and put some or all of the rest of your earnings into a savings account. You can use our budget calculator to show what a budget might look like with only one income, which can help to identify which expenses you need to cut back on.
Don’t forget about retirement
It’s never too early to begin thinking about retirement. Future financial management planning includes considering your transition to retirement and any associated costs with downsizing, accessing or consolidating super and wealth management. Making an appointment with a trusted financial planner is a good idea at any age. Check out our blog on retirement planning for tips on what to think about for your future self.
Proactively setting up you and your family’s future doesn’t have to be hard. It’s all about having a plan in place with the relevant insurances and a good savings mindset in action.
Need some extra help with putting a plan together to protect your assets and finances? Get in touch with the friendly team at Horizon today and let us help you on your journey.
The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant Product Disclosure Statement and Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.