You’ll recall that in our December issue, we shared with you the first 5 tips to becoming “Financially Well Organised”, this issue we share the final 5.

Before we do that, just pause and ponder for a minute ………. Think about your personal situation in terms of the 4 legs of the “financially well organised” table. Are you taking action towards:

1. Owning a Profitable business
2. Paying off your home – no home loan
3. Running a Self Managed Super Fund or building up your super
4. Accumulating other investments

What would it mean to you to tick off this list?

I challenge you to be true to yourself, have you really got all this covered? Can you tick off all of these areas? If not, make the changes you need today.

Remember, “The future depends on what you do in the present” (Ghandi).

Here are the final 5 tips…

Tip #6 – Pay Your Self First

Robert Kiyosaki, the author of “Rich Dad Poor Dad”, coined the idea of “Pay Yourself First”. This is an area of major importance and when drilled down, is as simple as controlling when your money is allocated.

Instead of channeling all of your funds into creditors, schedule in your own payments first. These include your wages, your dividend payments & your super payments, so they happen irrespective.

Tip #7 – Structure Your Debt Correctly

The principles are simply:

• Reduce non-deductable debt first – ie your home loan
• Non-deductible loans should be principal & interest to get rid of them as fast as possible
• Deductible loans should be interest only until all non-deductible debt is repaid – ie your business loan, your investment property/share loan

Tip #8 – Consciously Support Your Superannuation

Consciously know how much you will need to retire on and have a plan to make sure you’re working towards this amount. With the current contribution levels at such low values, it’s important to take advantage of the contribution limits each year (<50 years - $25K, >50 Years - $50K). Have you considered a self managed super fund? This works well if you like to control your own investments, or want to invest in property by using your superannuation.

Tip #9 – Get Yourself Covered

Get the right levels of insurance in place. Have you considered income protection, life insurance or key man insurances? What would happen to your business and to your family if something happened to you? Or to your business partner? Make sure you are covered properly.

Do your wills reflect your current wishes? Be clear with your instructions now to save your family later.

Tip #10 – A Planned Retirement

Plan for your retirement. Use a combination of superannuation and other investments. Make sure you are accumulating smartly, so that you’re not “leaking” your hard earned super in fees or taxes. Tax effective structures are available and used well make a huge difference to the amount you have to fund your retirement.

For any inquiries in relation to this article, please contact Jeni Wilcock at jeni@sullivandewing.com.au.