The festive season is approaching fast! Which brings the terrifying reality that another year is almost over… have you achieved what you wanted to financially in 2017? More importantly have you thought about what goals you want to set for 2018? Failing to plan is planning to fail so make sure that you are aware of how 2017 was for you financially and set some achievable goals for 2018. Taking stock of your finances before getting swept up in the festive season will allow you to start next year with a clear idea of where you’re heading and avoiding the nasty sting to the hip pocket that December can bring.
Reflect on the year:
Revisit the goals you set for yourself at the beginning of 2017 and assess how well you have achieved them. Take note of what steps you made to achieve them so you can continue the good practice in the future, but more importantly if you have not achieved your goals be honest about why not. Did an unexpected expense come up during the year? Did you lose motivation halfway through? Was your budget too strict for you realistically stick too? All these things are important to be aware of so you can tailor your plan for 2018 making it more achievable.
Review cash flow:
Compare your cash flow from this time last year to now, this will give you a better idea of what goals you can set for the next 12 months. Higher cash flow will mean you can set bigger goals or similar cash flow will mean you continue to work on your current goals. Analysing cash flow at this time of year is also a great way to ensure that you don’t blow the budget over the festive season so you can start 2018 stress free.
Reassess your insurances:
12 months is a long time and a lot can change during that period. Protections that you needed this time last year could be exponentially different to today. Make sure that all your insurances (personal, life, mortgage, home etc) reflect your current situation today to make sure that you and your family are protected if the unexpected happens.
Take stock of your superannuation:
During your annual financial stocktake it is important to check in on your superannuation that has been plodding away throughout the year. Is your fund consistently underperforming or are your fees forever on the rise? You need to make sure you have your nest egg with the right super fund for your needs, so take this time to ensure you are getting the most out of your fund or research funds that benefit your needs.
Reevaluate your estate plans:
As was said above in regards to insurances, a lot can happen in 12 months, so it is extremely important to ensure that your estate plans reflect your situation today. Maybe there was a new addition to the family, a separation or new assets accumulated over the course of this year. Whilst it is often a hard topic to think about, protecting your loved ones in the event of a tragedy is extremely important.
Set new goals:
Now it is time to set some goals for 2018. Think about where you would like to be financially this time next year and set realistic goals that you would like to reach. Be sure to map out how you intend on reaching these and set mini check ins throughout the year to make sure you are staying on track.
For more information on how to reach your financial goals for 2018 contact Solid Investment Property on (03)9690 2666