Understanding where and when money is coming in and out of your account is one of the most important things you can do to help get on top of your finances. After all, how can save money or figure out where you can trim expenses unless you know how much you’re spending and where your money is going? Key components of your expenses are usually living costs, income tax and mortgage repayments (if you have a home loan), but you also need to take into account incidental costs such as holidays and entertainment.
To improve your cashflow position, your Financial Planner can help you address factors such as:
- Creating a budget: A budget sets out all your money coming in and all the money going out. It helps you see if you are spending more than you are earning, and also identifies where you are spending your money.
- Minimising your tax obligations to maximise your income surplus: Tax can be minimised by using different taxable entities that are on a lower rate, taking advantage of allowable tax deductions and tax rebates
- Wealth creation: Strategies for effectively utilising your income surplus for wealth creation which can increase investment income