How often do you conduct a finance review?
I’d bet that it’s not as often as you service your car?
Most professionals take every precaution to service their car and keep it all in good working order, to ensure that it gets their families safely from A to B.
But many neglect to conduct finance reviews to ensure they are on track financially to go from A to B: from where they are now to where they want to be in the future.
Why is this?
Finance review: As natural as servicing your car
We all know that cars need regular attention to keep them running well. We book regular services to ensure our vehicles are kept on the road.
Even though there is an associated cost, drivers value the attention of a professional to check how the car is running and whether maintenance work will prevent larger issues developing down the track.
This ensures you stay up to date with your vehicle, it’s running well, and you’re aware of what’s around the corner, e.g., a major service, replacement of timing belt or brake pads, etc.
This means that you can prepare for these expenses and there are no surprises to cause stress or hurt your cashflow.
Servicing a car is surprisingly similar to reviewing your financial strategy. In fact, consider your financial strategy as the “financial vehicle” that gets you from A to B. And to service it properly, you need a fully qualified “financial mechanic”.
Start conducting a regular finance review with a financial “mechanic”
Plenty of professionals do conduct regular reviews of their financial plans. And it’s no surprise that they’re experiencing great results.
However, the Royal Banking Commission has highlighted that not all “financial mechanics” are equal or prepared to look after you over the long term.
The good news is that there are quality practices that work hard to regularly service their clients and keep finances on track.
Here’s a financial mechanic’s checklist to make sure you are getting the best from what’s under the bonnet in your business:
- A good starting point in planning your future is determining your current financial position
- Then work out your lifestyle wish list. i.e. dream holidays, house, family, work/lifestyle balance aspirations;
- Now plan to ensure that you can meet these goals or determine which ones are realistic; This might mean deciding which goals are “must haves” and which are “nice to have”; buying the Bugatti Chiron might have to take a backseat to your children’s education; everyone is different, so you need a tailored plan for your own circumstances;
- Regularly review your “financial vehicle” to keep your financial strategy on track and avoid major road blocks in the future.
Just as you ensure the safety of your family vehicle with the necessary checks by a licensed mechanic, consider your “financial vehicle” in a similar light.
Regular servicing allows financial mechanics to safety check your vehicle, helping to protect the wellbeing of your family.
You need an experienced mechanic who you can trust so that, when the unexpected happens, you can keep driving on with complete peace of mind. Contact us.
Altitude Financial Planning is a Corporate Authorised Representative of Altitude Financial Advisers Pty Ltd
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The information contained on this website is general in nature and does not take into account your personal circumstances, financial needs or objectives. Before acting on any information, you should consider the appropriateness of it and the relevant product having regard to your objectives, financial situation and needs. In particular, you should seek the appropriate financial advice and read the relevant Product Disclosure Document.