Here are five simple steps to get you on your way:
1. Understand your current financial situation.
- What do you earn versus spend?
- What do you owe versus own?
You need to know your starting point before you can work out where you’re going.
2. Create some clear financial goals.
- Pay off debt, buy a bach, prepare for retirement, buy an investment property
Whatever it is, you need a clear vision, then work on some specific strategies to help you achieve that goal.
3. Identify what’s holding you back.
- Lack of visibility of your finances?
- Poor debt management?
- Lack of control?
You can get techniques to mitigate all of these and make your money work for you.
4. Give yourself small rewards along the way.
- Is your approach all or nothing – that’s hard to stick to.
Build in small rewards that keep you motivated.
5. Define what it will take to reach your goals
- Restructure debt, manage cashflow better, create a budget.
Special thanks to Michael Cave (AFA) of Cave Financial Consulting for this article. If you'd like some assistance in these matters, we'd be happy to make an introduction for you. Or contact Mike on michaelc@qbg.co.nz