Let's Be Honest: Taking Stock & Making Changes to Personal Finances Sucks

When it comes to making sure you are on track to achieve your financial goals and objectives, it can often help to take stock of your personal finances periodically. A new financial year can be an opportune time to do this.

Generally, taking stock of your personal finances can provide the opportunity to gain an understanding of where you stand, both overall and in specific areas. In doing so, you may identify specific areas that need attention.

Below is a list of questions to help you take stock and see if attention is required. Please note: This is not a comprehensive list, we have limited it to three key questions per specific area of your personal finances. And remember, if you do identify something needing attention, we are here to help — so, please reach out.

Personal finances overview

Cash flow management

1. When was the last time you reviewed your income and expenses (and surplus income)?

2. Are there any avenues to accelerate the repayment of debt or increase money into investments?

3. Do you have enough savings (an emergency buffer) to fund your living costs for at least three months?

Debt management

1. Is your debt structured appropriately for you?

2. Do you have the capacity to increase your debt repayments?

3. When was the last time you reviewed the interest rates charged on your debts?

Estate planning

1. Is your superannuation death benefit nomination up to date?

2. Do you have a Will? If so, how old is it, and does it still reflect your wishes?

3. Do you have a power of attorney, guardianship and advanced care directive in place?

Investments

1. Are your investments structured appropriately for you?

2. When was the last time you reviewed your investments (inside and outside of super)?

3. Do your investments still reflect what you want to achieve over the short, medium and long-term?

Personal insurance

1. Are your personal insurances structured appropriately for you?

2. Are you appropriately covered if an unforeseen event happens to you or your partner?

3. Has a recent life event occurred that may require a review of, or claim on, your personal insurances?

Social security

1. Have you ‘gifted’ assets to someone in the last five years?

2. Are you currently providing informal care for a loved one?

3. Are you eligible for or receiving social security benefits (eg Age Pension)?

Superannuation

1. Do you currently contribute to super? If so, what type of contributions and how much per year?

2. Are you on track to achieve a comfortable lifestyle in retirement, supported by your super assets?

3. If you’re receiving an income stream, are you meeting the minimum annual pension payment requirements?

Moving forward

Periodically taking stock of your personal finances is an important part of making sure you are on track to achieve your financial goals and objectives. By taking stock, you can identify specific areas that need attention.

If you have any queries about this article, or have had a change in circumstances that you would like to discuss, please contact us.