Take our financial fitness test
Much like going to the gym – though arguably more important – we all strive to improve our financial fitness. However, the difference between your finances and your gym membership is many people don't understand how they can improve their savings.
While you can always put an extra session in to improve your physical fitness, putting yourself on a stronger financial footing is a little more tricky, and much more obscure. And yet, it always starts with asking yourself…
We think everyone can improve their fitness with a little financial planning.
How's your financial fitness?
It's a question many people will be posing to themselves, particularly with the growing concern that superannuation savings and Australia's pension system might not be enough to ensure a comfortable retirement. People are asking: "how much will I need for retirement?" and the answer is becoming difficult to ascertain.
In the short term, too, you'll want to able to afford to educate the kids, put some money aside for a holiday, and generally live without constant money concerns.
That's not necessarily the case at the moment. According to the Australian Psychology Society, personal finances are the biggest cause of stress in Australia, with almost half of us naming them as the biggest worry.
A survey from Essential Report finds that only 49 per cent of us are able to live comfortably and save a little. More than a third (35 per cent) say they cannot save any money at all, while only 8 per cent save "a lot" of their income.
Even medium- and high-income earners have concerns over their financial stability, which often manifests itself as a feeling of unease; it may be subconscious and the cause not identified. We think everyone can improve their fitness with a little financial planning, regardless of their income.
So, without further ado, here is our checklist to test yourself with.
Our financial fitness test
In essence, we have five questions to ask you:
- Have I got a good home loan and am I being smart in how to reduce it faster?
- Do I have the right life and income protection both inside and outside my super?
- Is my super competitive and is it on track for good growth?
- Do I have the right insurances in place to protect my family if I get hurt or fall ill?
- Do I have a long-term plan to help me make good financial decisions?
If you answered no to any of these, there's a little work to be done.
What Eclipse can do for you
We had a couple approach us in 2014 as they realised they had questions that needed answers. Over the course of 18 months, we worked with them to review and improve their personal insurances, home loans, banking and super.
While they had all these things in place, every one of these areas wasn't structured quite right for their situation and what they wanted to achieve. On top of the structural advice, by shopping around various banks and insurers, we were also able to source better products for them, cheaper premiums, lower fees and better returns.
The other benefit for these clients is that we've mapped out and projected their financial future. Every financial decision they make is now easier as it's part of an overall plan. This means they can focus on other areas of their life knowing their financial future is on track and they're progressing towards their goals.
If you'd like to improve your financial fitness, book an initial interview with a financial planner. Just like boot camp with a personal trainer, your first session is usually free, so you can see if you're compatible. With tailored financial planning and someone behind you to motivate and educate you, we're sure you'll be financially fitter for the years ahead.