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Five investment advice areas for a strong financial foundation

Investment advice is important – nay crucial – if you want to play ball in the finance game. Financial services can be incredibly helpful in identifying where you’re at financially, where you want to go and how you can get there.

However, before heading down that path, get clued up on your financial basics.

Here are some handy strategies to bed down before moving into more sophisticated investing.

1. Pay yourself regularly

Why should the retailers receive all your hard-earned cash? Deposit regular portions of your income into your savings fund of choice to build a bank of money to work with when investing.

Even better, opt for automatic transfer and calculate it as a percentage of your income – say, 10 per cent – so that the deposits are consistent and future projections more solid.

2. Super-charge your super

Many Australians don’t give super a second thought – rookie mistake. Get organised early – know your super fund (and if you have more than one, consolidate), explore alternative funds better suited to your circumstances and any correspondence or paperwork in a central file. By getting on top of your super now (and not letting it become afterthought), you are saving yourself a headache later down the track.

3. Credit cards

Avoid the forbidden apple of money – credit cards may look shiny and tempting, and will certainly satisfy those consumer impulse urges but, in the long-run, debt and accumulated interest will create a world of hurt. If a credit card is essential, explore lower limits and interest charges. Most importantly, pay back any debt when due.

4. Insurance assurance

Insurance is a necessity when considering your ‘what if’ scenarios. Look at the areas, which may require insurance – such as car, home or life insurance – and explore what level of cover is required and how you can minimise your premium and payments.  

5. Have a plan (no matter how rough)

Before seeking financial advice, consider what your financial objectives are and outline a plan for the next five, 10 and 20 years – no matter how rough. Once you know where you want to go, you can establish some smaller financial goals to help make this dream a reality.  

Once you have established the financial basics, you will be in a better position to delve into more sophisticated investing, such as a share portfolio or the lucrative property market. For an informed financial plan – and to ensure you do not become engulfed in the complexities of the financial market – seek out professional investment advice.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Wednesday, August 04, 2010

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