Financial planning foundations

When you build a house, it’s important to have sound foundations. This simply means that you’ll have to have sound foundations so you have a strong base to support your home. The same applies to building your long-term wealth. Good foundations are vital.

What makes good financial foundations? Two of the key elements are:

• Risk management

  This simply means recognising that things can go wrong at times and knowing that you have a plan in place to cope with any unforeseen situations that arise. Common examples of risk management are having health insurance, life insurance or other forms protecting against financial loss. It would also extend to having a valid Will and Enduring Power of Attorney in place.  

• Regular savings

  This can take place in a number of ways. One of the first things you can do if you are keen to increase your savings is to review your Budget. This will show you how much savings capacity you have. The SSFS Budget Calculator can help you easily discover where you spend your money and identify further savings potential. If you’re working, an example of regular savings is your superannuation.

If you want to increase your super savings, there are several options for you to consider such as co-contributions, salary sacrifice, spouse contributions or super splitting. Generally, the secret to saving is being consistent. Even small amounts, if saved regularly, add up and can significantly boost your super and non-super savings.

Read more about budgeting and strategies to boost your super or speak to your local financial planning team to discuss the options that would best suit your individual situation.  

Related content:

• Budgeting
• Budget Calculator
• Building your wealth