It’s Not too Late to Take Control of Your Finances

Time marches on and those celebrations from the last New Year’s Eve may now be just a dim and distant memory. Unfortunately, the resolutions made during those moments may also have fallen by the wayside as the pressures of everyday life come to the fore. However, some of these resolutions may have been very important and designed to make significant improvements in your life, so they must be prioritised as soon as possible. It’s never too late to readdress any resolutions related to personal finance, and even though 2019 is on the horizon—which means a new batch of New Year’s resolutions—steps can be taken now to seize control of your financial position. Yet how do you do this and where should you start? Below are a few insights to help you out. Waking Up to Your Situation Begin by taking an inventory and finding out exactly where you are. You need to gather and review all your credit card and bank statements for the past six months, so you can determine exactly where your money is going. You may be amazed to see how much you are wasting through inertia, as you may have forgotten to cancel old direct debits or subscriptions, and these add up. After all, according to The Australian Payments and Clearing Association, the number of daily direct debit payments has more than doubled over the last decade, so it's not surprising that many of these will be forgotten and slip through the cracks, putting more unnecessary financial pressure on you. Consolidation Next, look at your recent store receipts and credit card charges and figure out how much you spend each month on interest payments alone. It’s not surprising that credit card debt has risen by over 42% in Australia over the last five years, with the average amounting to more than $3,300 per person and two-thirds of consumers accruing interest at a rate of nearly 20% per annum. Consider whether you could benefit from a consolidation loan to pay off these high balances for one, lower monthly repayment, at a reduced interest rate. Be Prepared Set up an emergency fund so that you have less to worry about financially and as you look for more creative ways to invest your money. Open an account that will not penalise you for making any withdrawals and be your rainy-day fund. When you have money on hand, you won’t be forced to rush getting a loan (and acquiring additional debt) if something unexpected crops up or if you need to cash-out any investments to get hold of funds quickly. Using Your Tax Incentives Make sure that you are taking full advantage of any tax incentives. If you haven’t already done so, look at offsets relating to health insurance premiums, or certain types of medical expenditure. Many people overlook the spouse contribution tax offset, which allows some funding to be put into a compliant superannuation or retirement savings account. Go for Solid Investments Invest in strategies that will allow you to continuously increase your net worth in the months and years ahead. Property should be at the top of your list, as this will help you to generate income and equity, enjoy residual value and capital gains, and pass the net result on to your dependents. This, of course, will require careful planning and a sound approach. Remember, property investment is a long-term plan and you shouldn’t expect results overnight, which is actually a major mistake many aspiring property investors tend to make. The good news is, with the right location and planning, investment properties will always enjoy demand and increase in value over time, resulting in higher ROI in the long-term. The property you’ll get will be crucial to your success, and this is something we at Calla Property can help you with—our research methodology Calla Property Insights will help us in selecting the property that best fits your investment strategy. If you buy property that’s located in a capital city, you can expect to double its value in approximately 11 years, which is a true indication of the magic of compound interest. You also gain passive income if you rent out these properties. In other words, you still have time to get into property investment before you must come up with another list of New Year’s resolutions—doing so can lead to financial benefits you can still enjoy even beyond 2019. Seek Expert Help You may be hesitant to look at property because you’ve never considered it as an option before, or you think gains could be difficult to achieve. At Calla Property, we understand where you’re coming from, and will work to help you be in a better position for property investment success by finding the best property for your investment goals. This is a FREE service—if you have any questions or want to know more about what we offer, don’t hesitate to contact us and fill out this form and we’ll be in touch. Disclaimer: No part of the information presented here are intended as advice. This is for general information purposes only.

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