Common Mistakes When Planning Your Financial Future

The start of a new year is often the time when many people review their goals and put financial plans into action.  The road to wealth is not a quick one and making those investments for your financial future can be complex. In positioning yourself to work towards achieving your financial goals here are some common mistakes that people make that you can avoid.

The start of a new year is often the time when many people review their goals and put financial plans into action.  The road to wealth is not a quick one and making those investments for your financial future can be complex. In positioning yourself to work towards achieving your financial goals here are some common mistakes that people make that you can avoid.

• Have a long-term financial strategy

It is a common mistake that many people make when planning their financial future to not have a strategy. Don’t worry, it’s not too late, you can seek professional financial advice to set out a plan to work towards achieving your financial goals. Work with your financial adviser to set out milestones for where you want to be in the future. Remember to live life while your young; however remember to plan for your retirement also.

• Failing to get financial advice

Whilst it’s important to keep yourself up to date on financial advice it is essential to go over your financial strategy with a financial adviser to ensure that you have covered everything. A reputable financial adviser will not only be able to discuss issues related to you personally they will be able to assist you when your circumstances change or in terms of legislation.

• Work within a budget

Ensure that you have a healthy balance of income and savings by constructing a realistic budget for you and your family. By going through your financial statements and setting out your expenditures you can identify where your money is going. Once you have identified where your money is going you can look at how your money could be better spent.

• Unfortunately there is rarely a quick fix

Wealth is a long-term goal there is rarely a quick fix to wealth. Remember if you come across something too good to be true, it usually is. High return is accompanied with high risk. A good option is to always refer back to you financial strategy and make sure that your investments match your objectives.

• Failing to regularly review your situation

In life we all know that circumstances change, it is important to remember to watch out for changes in your financial circumstances and what that means for your financial strategy. Remember to keep checking on your investments to keep an eye on inflation and remember to check in with your financial adviser if you need help or are concerned that your investment is providing poor performance.

We are a small business accounting service located on the beautiful Sunshine Coast and would appreciate the opportunity to help you, your friends, family and colleagues. Contact us on 07 5451 1118 for an obligation-free confidential discussion today.