With 2013 well underway, here are some simple yet effective tips to get you started.
Start your tax planning now – Although we are still 6 months before the end of the financial year, it is important to start your planning now before it is too late. This can include make extra super contributions, purchasing tax deductible items or purchasing tax effective investments. Reducing tax is one of the most effective ways to create additional savings.
Review your loans – With interest rates in a downward cycle and every bank passing on different amounts of the cuts, now would be a great time to review your loan structure. It is not all about getting the cheapest rate, there may be a better structure for you that allows you to save more interest and money.
Look at where you super is invested – The share market has had a great run over the last 6 months. You want to make sure your super is invested in the right assets for your situation. This could include international shares, direct Australian Equities or even Direct Property.
Invest your excess savings – The disadvantage of interest rates declining is your cash returns become lower. If you have money in savings (high interest or Term Deposits), now would be the time to look at alternative investments and your investment portfolio.
Get organised – This sounds simple, but if you have your finances in order it will help you build your wealth. This is because you won’t pay any unnecessary fees or charges as all bills/interest will be paid on time but it also allows you to understand what you have and make the most of it. With technology, there is an abundance of software available to help you get organised. If this doesn’t work, hire someone to help you.
These top 5 tips sound very generic and simple… and they are. They are not designed to be high risk or complex but to help you along your wealth journey.