As you may or may not know, the federal government has recently introduced changes in legislation that ALL Superannuation policy...
If you find your irregular income stressful and would prefer to be in a position of assurance when it comes to your cashflow, then you need to get serious about your budget and your spending. Understanding of your net cashflow position (both business and personal) is fundamental to your financial freedom.
It’s the key to making smart and powerful decisions for your future and building your wealth, and we’d all like that!!
Step 3 involves “paying yourself first”! Before you start paying everyone else (utilities, loans and credit card providers, school fees etc) set aside an amount for your savings.
It takes discipline, but if you’re sick of living week to week, concerned about not having a decent cash “buffer” for unexpected expenses, or that you won’t have enough for that well earned holiday, then it’s worth doing. You need a strategy in place that takes into account both your short-term needs (savings) and your long-term needs (investment).
And speaking of savings (funny how these things just seem to flow; you’d almost think it was common sense). It’s important to make sure you don’t pay any more tax than you have to because that would be a waste.
Financial Freedom involves knowing how to “squeeze” as much money out of the Government as possible (legally of course!!). As well as maximising your business and personal deductions, you should also review any tax effective strategies you might be able to take advantage of to improve your financial position.
Did you hear the one about the 8 year old who inherited $6 million from his dad’s estate while his mum inherited the house and $200,000?? How could this happen? Because his father didn’t have a Will.
If it’s important to you that the right people inherit your assets when you die, and that someone can make decisions on your behalf if you’re not able to, then you need to do something about it.
What would it mean for you to be debt free? Less stress, less arguments, and no more money wasted on loan interest.
Your 2nd step to financial freedom is putting a robust debt management plan in place. One that will make sure your loans are structured correctly and that you pay off your debts faster so that you can focus on getting ahead!
Aside from your business, your superannuation may be the most important investment you make in your future financial freedom.
Have you thought about what will happen if your business doesn’t sell for what you expected? And are you on track to have $744,000* saved by retirement? Because this is the minimum estimated amount needed for a couple to lead a “comfortable lifestyle” in retirement. Decisions about your super today will directly affect your future lifestyle!
Imagine you had a machine in your home and once a week you turned the handle and it dispensed $1,800. Would you insure that machine for potential breakage or malfunction? Of course you would; in the same way that you’ve insured your home, contents, car…
You care about the lifestyle and financial security of your family right? You should be spending a small percentage of your income to insure your greatest asset – your ability to earn income.
When dealing with the day-to-day operation of your business, it’s easy to neglect things like finances, systems, and marketing. But this can create run-off problems, including weakening the business, anxiety, and cashflow struggles. This can then in turn lead to business and financial stress and more time away from the family.
So the final step towards unlocking financial freedom is spending time to grow your business, and work ON it not just work IN it.
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