Plan more. Worry Less. Why is it important to have a financial plan?
Are you worried about your financial situation? You are not alone. Recent research by Ubank1 found that 59% of Australians admit their current financial situation causes them stress or loss of sleep and nearly half of millennials (44%) constantly worry about their financial future.
Furthermore, UBank’s third annual “Know Your Numbers Index”1 revealed that Australians don’t know key financial numbers and as many as 86% of Australians don’t know their monthly expenses. The research looked at Australian’s knowledge of their monthly spending, including household expenses and money spent on entertainment, with a large number admitting they don’t know how much they are spending from month to month.
Regaining control over your finances is the key to less worry, and there are some simple steps you can take to achieve that. Prepare a household budget, understand your cash flow and educate yourself on the key financial numbers that affect you: what is your mortgage interest rate, how much do you have in credit card debt, what interest rate are you paying monthly. Armed with this knowledge, you can now make a financial plan.
To help determine a financial plan that’s right for you, you need to have a goal. In essence, a financial plan is a map to reach goals. Do you want to pay off debt, take a holiday or buy a home? No matter what your goals, a financial plan is a bridge that gets you from where you are now to where you want to be.
Having a financial plan in place can help alleviate the stress and worry many Australians feel about their finances. If you are struggling with your financial situation, it can be beneficial to reach out to an expert Financial Planner, who will work closely with you to ensure your financial plan works for you now and in the future, as your circumstances change.
The team at Greentree Financial would love to help you achieve your financial goals.