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Goal Setting Part 2: Planning for Financial Success

Posted 4 months ago in BUSINESS PLANNING

Goal Setting Part 2: Planning for Financial Success

As we head into a new financial year some time and attention should be put into your financial plans and, in particular, budgeting. Planning for Financial Success is the first step to achieving success so here’s a few tips to help you get ahead this year, financially.

1. Get Paid What You’re Worth and Spend Less Than You Earn

It may sound simple, but many people struggle with this first rule. Make sure you know what your product or service is worth in the marketplace.  Undervaluing your products or service not only is detrimental to the market as a whole but also puts you on the back foot to success.  A monthly review of your Profit & Loss will show what you are really making and it may be a lot less than you realise!

No matter how much or how little you’re paid, you’ll never get ahead if you spend more than you earn. Often it’s easier to spend less than it is to earn more, and a little cost-cutting or just paying attention to your expenses each month can see your profit increase exponentially.  Again, reviewing your Profit & Loss monthly will help you manage and refine this before it’s too late.

2. Stick to a Budget

Budgeting is the most important tool for helping you get ahead financially. You need to set up a budget whether you make thousands or hundreds of thousands of dollars a month. Reviewing your monthly Profit & Loss against your budget will ensure your budgeting skills improve, you have a better understanding of your income and expenses plus you will soon be making more money as well.

3. Pay Off Credit Card Debt

Credit card debt is the number one obstacle to getting ahead financially. Those little pieces of plastic are so convenient to use, and it’s so easy to forget that it’s real money we’re dealing with when we whip them out to pay for a purchase, large or small. It’s a short term gain but make sure it doesn’t become a long term pain as well.

4. Have a Savings Plan

You’ve heard it before: Pay yourself first. If you wait until you’ve met all of your other financial obligations before seeing what’s left over for saving, chances are you’ll never have a healthy savings account or investments. Resolve to set aside a minimum of 5% of your salary for savings before you start paying your bills. Better yet, have money automatically deducted from your paycheck and deposited into a separate account.

5. Invest

If you’re contributing to a retirement plan and a savings account and you can still manage to put some money into other investments, all the better.

6. Review Your Insurance Coverages

Too many people are talked into paying too much for life and disability insurance, whether it’s by adding these coverages to car loans, buying whole-life insurance policies when term-life makes more sense, or buying life insurance when you have no dependents. On the other hand, it’s important that you have enough insurance to protect your dependents and your income in the case of death or disability.

7. Work with a Trusted Advisor

This may be a business coach or chartered accountant or mentor, either way a trusted advisor will help you stay on track and ensure you are achieving your financial goals. The accountability alone will have you thinking twice before splashing out on that spontaneous expense plus monthly or quarterly meetings will ensure you are continuing to learn and grow with your business.


Complimentary Business Review Meetings

Contact us today if you would like to book a complimentary business review meeting to find out what options we can offer to help you meet your financial goals – from group workshops to one-on-one coaching and more.

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