Secure Your Financial Future Today
8 Finance Tips That Will Have You Ahead of the Game in 2018.
Who doesn’ t love this time of year! New Year’ s resolutions are in full swing, gyms are full, and everyone’ s excited about the year ahead. It’ s also the time many of us start thinking where on Earth are we going and how are we going to get there? We start to make real plans to sort out our financial situation.
But where do you start? As mothers and small business owners we’ re managing the family unit and running a business. We manage the business finances and often the personal ones. And we need to stay on top of the day to day as well.
My job is to make the complex super simple. Here’ s my 8 tips to get you financially fit for 2018. 1. Review your super
You probably read this all the time but seriously – review your super! For many, super will be our single biggest asset outside of the family home. It’ s worth your time and attention. Plus it’ s awesome! It’ s one of the most important and efficient investments you will ever make. So, what can you do to make sure it’ s working hard for you?
CONSOLIDATE – If you have more than 1 superfund, consolidate. The more funds you have, the more fees you are paying. You may as well throw your hard-earned money down the drain.
FIND- Search for lost super. Chances are, if you’ ve moved around a lot and / or changed jobs over your career, you may have lost track of some of your super. Head to www. ato. gov. au / Forms / Searching-for-lost-super / or search through your myGov account.
INVEST- Make sure your super is invested correctly for your age and stage of life, and attitude to risk. What does this mean? If it’ s a while until you retire you may prefer a“ growth” option which has more exposure to shares and property. If you’ re closer to retirement, you may choose a more conservative approach with more invested in cash and fixed interest.
2. Save for your retirement
As a business owner, saving for your retirement usually isn’ t top of your priority list, especially when trying to grow the business. The key is to put money aside no matter how little it may be. Your superannuation is going to fund your lifestyle after you stop working so it’ s important to make it a priority.
TAX DEDUCTIBLE- Did you know that your super contributions could also be fully tax deductible? Just another great reason to invest. To see if this applies to you, please consult a financial adviser or accountant.
MONEY FOR FREE- Depending on circumstances, you may be able to access the government co-contribution scheme. This can boost your super balance by an additional $ 500 per annum by making a small contribution of $ 1,000 to super each year from your after-tax income. To see if you qualify try the ATO co-contribution calculator- www. ato. gov. au / Calculators-and-tools / Super-co-contribution-calculator /
3. Keep your finances separate
It may feel like opening a separate account for your business means more time on admin, but the opposite is true. Separate accounts makes it much easier to manage your business cashflow and complete the dreaded Business Activity Statement, each quarter.
There’ s also less chance of missing any key deductions you’ re entitled to when personal and business expenses are separate.
Additionally, one day you may want to borrow using your business income. By keeping things separate it’ s easier to show the bank how your business is doing.
14