We can all agree that 2020 was a tough year for everyone the world over. In Australia, the bushfires, the pandemic and then the resulting global recession brought our world to its knees.
However, Australia has shown great stability and resilience throughout this time. Looking back to the year that was, it seems like we're past the worst of the turbulence now, especially since vaccines are rolling out around the world. As we hopefully emerge from the crises, it’s time to set our sights forward.
The Australian economy is emerging from the effects of everything we witnessed with great finesse, so-much-so that the experts believe that 2021 will most likely be defined by the reopening and emergence of the Australian economy.
Financially speaking, this can be a good time for all of us here to get our finances in order and contribute to the rebuilding effort – get help from financial advisers about the best course of action and implement money management strategies that will work for us through 2021 and beyond.
Here, in this blog post, we touch on some of the practical strategies that can yield positive results – From re-evaluating your mortgage to creating an emergency fund, we have put together this list with great thought. Don’t hesitate to call our advisers for a more detailed discussion on strategies that are suitable for your particular circumstances.
1. Getting the right insurance cover
Having an insurance cover that is suited to your lifestyle and circumstance can be useful. Understanding what your insurance cover includes and does not include and how comprehensive or specific it is – can be a good starting point. Talk to a financial adviser about the specifics of your cover and how you can change or improve it to be more suitable.
2. Is there a better rate for your mortgage?
Consider this question seriously – is there a better rate for your mortgage? Studies show that about 38% of Australian homeowners are unaware of what their mortgage rate is! With all the rate cuts announced by the RBA last year, it is quite possible that you are missing out on a good opportunity to save.
3. The implications of an offset account
An offset account is like any other transaction account, but with one major difference. The difference is that the offset account is linked to your loan and helps you reduce the interest you pay on your loan. It is simple to set up and maintain and can make a significant difference to your savings over the term of your loan.
4. Re-examining your Super
Have you previously felt trapped in an underperforming super fund? Until recently, some employees were allocated super funds based on enterprise bargaining agreements. In 2021, new rules offer Australians more choice when picking their super fund, allowing us greater scope to decide where our hard-earned retirement savings are invested. It may be a good time for you to re-examine your super.
5. Creating an emergency fund
An emergency fund is a useful and practical strategy to overcome the challenges posed by an unforeseen event – such as an accident (especially if it impacts your ability to earn an income). Typically, you can live off of the emergency fund for 3-6 months. This gives you enough time to recover from your injury or find an alternate source of income.
6. Partnering with a trusted financial adviser
Discussing your financial needs, objectives and goals with a trusted financial adviser can make a huge difference. It can bring you peace of mind and also ensure your financial security - Take a look at the latest statistics that back this claim. Advisers can offer advice on important financial matters and make decision-making a simple and informed process.
Financial planning with Oakmont
These unprecedented times have meant different things for different people depending on your specific circumstance – a simple readjustment or a more significant new step. With financial planning, you are prepared to handle unforeseen challenges and are assured of the outcome.
At Oakmont, we are your financial advisers of choice. We are here for you – looking out for your financial wellbeing, guiding and supporting you with sound financial advice.
We have 60 years of cumulative experience working in this field. Our strategies can help you navigate the market with ease and confidence. We help you make the best possible decisions that are still aligned with your personal objectives.
Call us for an obligation-free consultation, today.
General Advice Disclaimer The information contained on this website and in this blog post is general in nature and does not take into account your personal situation or circumstance. It is recommended that you consider and use the information provided responsibly and, where appropriate, seek professional advice from a financial adviser. Although every effort has been made to verify the accuracy and correctness of information, Oakmont Financial Group, together with our consultants, officers, agents, and employees, disclaim all liability for any loss or damage suffered by any persons directly or indirectly relying on this information.
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