Some families follow a financial guide as part of their everyday lives and the idea of budgeting may not seem that difficult. However, there are many who people don’t budget effectively and struggle financially because of it. And even if you do follow a budget you have set yourself, you may be surprised to discover extra ways to make your money work more effectively for you – and help you reach your goals sooner.
Working out a simple income to expenses ratio with your Financial Planner will let you know if you’re living within your means, and how to best use any extra money. This doesn’t mean you have to give up luxuries such as holidays to focus entirely on investment and wealth creation. Reviewing your budget may open up opportunities you didn’t realise were available to you, without making huge changes to your lifestyle.
Managing your debts is just as important. Ask yourself the following questions:
- Are you paying more than you should in interest on any of your loans?
- Do you have too many loans?
- Are you making more than the minimum repayment on any of your loans?
- Will you be in debt for longer than you would like to be?
- Do you know whether all your loans set up optimally for your specific situation?
- Do you have a thorough understanding of your income and expenses?
- Do you have a savings plan for any financial setbacks?
At Resolve Finance Perth, our Financial Planning team can help you answer all these questions, and many more.
Your Resolve Financial Planner can advise you on which loan you should pay off first, whether you should refinance existing loans, and how to consolidate your debts. Most importantly, we’ll work alongside your Resolve Finance broker to ensure that your budget will continue to work for you throughout your entire home ownership journey.