Page 56 - Smart Money

Chapter 2

I’m going to have $300,000 in super.” You need to think about not just
today, but the future, too.

Do you know how much is enough?

Well, when you get a financial plan done by talking to a financial planner,
you’ll know the answer to that question. We’ll discuss this further in later
chapters. A financial planner will do a plan for you, so you know what
you need to do. But then you also need to stick to it and keep that strategy
moving forward. As well as a financial planner, the other person that I
would probably talk to is an accountant, especially if you have your own
business. You need to talk to the accountant and the financial planner so
they can give you the long term view of what you need to do. Obviously,
you need to stick to it, which is often the hardest part.

My best tip for sticking to your plan is to write it down and revisit
it every week or every month, minimum, and see how you are
going. You could also put it up on the wall or somewhere it will
be constantly visible.

A financial planner has a duty of care to call you every 12 months to see
how you are going. But if you wait for your planner to check up on you,
12 months is way too long. Lots of things can happen in 12 months, and
the problem is that most people do wait that long, which is not a good
thing.

You should set up a reminder in your calendar to check on your finances
every month. You should also set up a direct debit, or change your
monthly repayments. Instead of paying $500, make it $550. Ask your
workplace to take an extra $50 a week out of your pay cheque and put it
into your super. If you can do those sorts of things so you don’t see the
money, you’re not in control of it and it just happens, then that is what
you need to do. Then you need to have your yearly update.
A lot of people will spend money if they have it in the bank, whereas if
they don’t see it, they don’t spend it.

5