Financial savings advice & planning

With the right approach and sensible planning, it's possible to achieve your personal financial goals - like paying for a new car, or planning your dream wedding to or taking an overseas holiday. With some simple strategies in place you can take financial control and start ticking off your personal wish-list.

What is cashflow management?

Cashflow Management is more than just the process of setting a household budget. Your financial adviser can work with you to identify areas in your cash flow where you can potentially save on costs, restructure your banking, reduce debt, and maximise your income.

Cash flow management is the process of tracking of your incomings and outgoings. It allows you to predict how much money is available in the future and how much money you will need to cover your current costs.

Steps we guide you through along the way

Setting financial goals

We all have goals – things we’d like to achieve for ourselves and our families. A key starting point in turning goals into realities is writing down what you’d like to achieve. This provides something concrete to work towards.

Give your goals a timeframe

Next, prioritise your list of goals and give each one a timeframe of when you want to have it achieved. Now, divide your goals across priorities and  timeframes.

For instance, you may want to buy a car in 12 months; have sufficient funds for an overseas trip in two years, or be ready to buy a first home or upgrade your current home in five years.

Draft a road map

It’s likely you’ll need to build personal savings to fund your goals and it’s important to develop a road map that sets out the specific actions you need to take along the way.

A more specific financial savings plan generally works better as a guide, planning to ‘save more’ can be very vague. A more effective approach is to set concrete actions like “I plan to save $50 each week”.

Budget for success

Most goals cost money, making it essential to build a pool of savings. That means spending less than you earn and the most effective tool for this is a household budget.

Your budget will show how much income you earn; how much you spend – and highlight areas where cutbacks can be made to set aside savings to fund your goals.

Once your budget has pinpointed how much you can save on a regular basis, the next step is to transfer those savings to a suitable savings account or investment. This is an area where expert advice can help, letting you select the investment best suited for your goals and tolerance for risk.

Create an emergency fund

An emergency fund or a ‘rainy day’ fund can help you avoid the financial stress when something unforeseen happens..

A good rule of thumb is to create an emergency fund that can cover your expenses for a period of 3-6 months in  case you are unable to work or become unemployed. It can also be used for irregular expenses within this budget including car related expenses, insurance and big purchases.

Putting a little bit of money away from each paycheck the moment you get paid is a good habit to help you accumulate an emergency fund which will allow you to continue to meet your financial obligations if the unexpected occurs. 

Track your progress

Staying up to date with your savings process will tell you whether you’re on target to meet those goals. Your Adviser will be able to identify when some fine tuning may be necessary, and will be able to provide recommendations to your cashflow plan to ensure that you remain on track.