DON’T FOCUS ON THE STORM; FOCUS ON THE SOLUTION
Making financial decisions without a solid plan or understanding of where your money is going like going to the casino and putting everything on black. Sure, you might have a win here, or there – but, and this is a big but – you run the risk of losing it all. Which begs the question…
Do you know where your money is going?
In our experience most couples we meet lack the clarity of their full financial position. Sure, they might talk to their financial planner to ensure they have the correct investments and insurances in place, their accountant for tax minimization strategies and their mortgage broker about their interest rate and negotiating their best deal for their home loan (one of the biggest costs in the household budget), but so many don’t stop to look at the household budget, and that’s a problem.
Well, whilst you might think you have it all figured out with your mortgage broker, accountant and financial planner, what you may not realise is that without a solid plan and true understanding of where your money is going on a daily, weekly, monthly basis – you actually lack the clarity of your cashflow to make informed financial decisions.
Big deal though, right?
Well, yes – it is a big deal because it’s the small daily habits and the decisions we make on a daily basis that either bring us closer to or further away from our financial goals. Getting the best rate on your mortgage does not assist your greater financial goals.
Please don’t get us wrong. Getting a reduction on your monthly mortgage commitment is strongly advised (if at all possible in the current market), but there are many other steps you can take in your household budget that will allow you the opportunity to save more money and free up cashflow. Developing your savings strategy for instance, and have consistent savings for future goals allows opportunities to present themselves to you so that you can take strategic action on your longer-term goals making your dreams become possible.
You may want to make additional payments into your mortgage, to pay off your home loan sooner or deposit additional funds into your superannuation so you can have more money when you retire. Or it might be the ability to save for a holiday rather or a home project rather than refinancing the mortgage to do so…
It might even come in the form of less arguments over who spent what, when, how, why and allow you to heal your relationship with each other and with money.
Whatever your goals, your opportunities are endless and having a solid plan for where your money is going will give you the ability to make informed financial choices allowing you to live your best life – always.
If you find that you are unable to make informed financial decisions, feel like you are going backwards, or find that you are arguing with your partner over spending money then it’s time to get in touch.
Remember that nothing changes until you choose to change and the power of change resides within you! Your life can become the success story you want to be.