Why ongoing service is important?

Budgeting

Budgeting is a simple activity that helps people to track their income and expenses. Successful budgeting is the key to good financial management. By understanding your day to day finances, you are able to judge whether your spending is essential or optional, and to think about ways to save as much and as regularly as you can by making a plan and setting some goals.

Savings

Saving is closely related to budgeting. Budgeting is the tool which assists people to understand their capacity to save. The key to successful saving is to start early, no matter how small the savings.

Asset Allocation

Asset allocation refers to how investors distribute their investments among various investment asset classes. Asset classes are types of investments, the main being cash, fixed interest, property and shares. Numerous studies have shown that asset allocation is a key driver of investment returns, playing a much larger role than individual investment asset selection.

Over the last two decades, no asset class has outperformed on a consistent basis. Yesterday’s winner is often tomorrow’s loser and vice versa. Your aim as an investor is not simply to get the highest possible return, but to get the right balance between risk and return for your individual risk profile. Given the dynamic market and economy nowadays, you would need to review and adjust your asset allocations to reflect all the changes and investment opportunities in the market.

Investing

Over the last two decades, no asset class has outperformed on a consistent basis. Yesterday’s winner is often tomorrow’s loser and vice versa. Your aim as an investor is not simply to get the highest possible return, but to get the right balance between risk and return for your individual risk profile. Given the dynamic market and economy nowadays, you would need to review and adjust your asset allocations to reflect all the changes and investment opportunities in the market.

Debt Reduction

Loans can be an essential part of achieving longer term goals such as buying a home, but their costs, including repayments and fees and charges, should be understood and affordable. Most Australians have loans increasing with age, peaking for people aged 30 to 44 and decline thereafter. With loans, it’s a good idea to repay more than the minimum required and make additional or more frequent repayments whenever possible. 

Retirement & Planning

Most Australians are highly confident in their ability to plan for their long term financial future but only around 60% say they have the ability to ensure enough money for retirement. Planning is the best way to achieve security in retirement, and the earlier you put your plan into action, the more choices you will have. To achieve your retirement goals, you need the same skills they acquire in becoming successful savers and investors. 

Reviewing Your Situation

Your financial plan is one which chalks out your financial goals and how you plan to achieve them. As your situation in life changes, your financial plan also requires regular reviewing and change. Just as how you undergo regular health check-ups to review your health and regularly service for your vehicle or electronic appliances, your financial plan also needs regular examination. Here are a few reasons on when it becomes important to review your financial plan.

All personal and economic changes in your life need to be incorporated in your financial plan. This does not mean that your financial plan should be reviewed only if you face the above changes in your life. Even if things do not change, you must review your financial plan at least once a year to analyse the position of your investments and see if this is helping you achieve your goals. Remember that merely creating a financial plan will not help you attain financial stability. Reviewing the plan regularly, making changes as required and leading a disciplined life will help you meet your goals and achieve financial stability.

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