What are your business and personal goals for 2023?
We’ve compiled a list of 10 common business goals that people commit to if you hadn’t turned your mind to goal setting.
You can implement more than one of these!
Focus on achieving these goals, and you will be well on your way to having your most successful year yet.
Try all 10 and watch your financial success grow:
1. Pay Yourself First
Never live bigger than your paycheque.
Instead, use your paycheque to invest for your future.
That means:
- Saving often
- Investing regularly
- Avoiding lifestyle creep
How to implement: Are you paying yourself a proper wage from your company for the effort you provide? Treat yourself as employee #1. Your business is there to provide for you. Does your take-home pay match your payslips? Lets set a 2023 Wage plan for directors, family members and employees.
2. Educate Yourself on Basic Financial Literacy
Financial illiteracy costs adults over $2,000 per year.
Learn financial basics to:
- Earn more
- Save more
- Invest more
Learn about money to make money.
How to implement: Schedule a consultation with us if you’d like a business planning meeting. We can break the jargon down into simple terms. If you feel like a meeting is too much, send us an email! There is no such thing as silly questions. We can provide you with resources and tips to read further. Youtube is also an excellent resource, there is shortform content on almost any topic you can think of.
3. Build Additional Income Streams
The average millionaire has 7 streams of income.
Your job is 1 income stream away from 0.
Instead, build multiple income streams:
- Side hustle (Start a Business)
- Invest – Dividends (stocks)
- Invest – Rental property (real estate)
- Invest – Term Deposits
How to implement: Work out how much disposable savings you have to invest, and use a proportion of your future income to grow your investments regularly.
4. Pay Off All Credit Card Debt
The average family has about $6,270 of credit card debt.
With an average 20% interest rate; these families may be paying $1,500+ in interest PER YEAR.
How to implement : Start paying off high-interest credit card debt now. We recommend to pay off your most expensive debts first, followed by non-tax deductible debt, then finally your tax deductible debt.
5. Build an Emergency Savings Fund
Many Australian families live pay cheque to paycheque.
That means the average family would have to resort to high-interest credit card debt to pay for surprise expenses.
How to implement: Save 3 to 6 months’ worth of living expenses to protect yourself and your family. We call this peace of mind. You can sleep at night knowing you can meet your upcoming commitments. Any savings over and above this amount can be invested
6. Develop & Stick to a Budget
Navigating life without a road map is difficult. And when it comes to money, your budget is your road map.
Budgets help you:
- Plan
- Execute
- Visualize
- Accomplish
How to implement: If you need help starting a budget, contact us for a free budgeting template that our clients use to understand their personal income/expenses.
7. Establish a Solid Credit Score
Good credit scores help you:
- Buy a car
- Buy a home
- Get a new job
A good credit score means you are responsible. Start building your credit now.
How to implement: Pay all bills as they fall due. Have a good cloud accounting system for your business to keep track of your expenses and upcoming due payments.
8. Boost your Retirement Savings
Albert Einstein once said Compound Interest is the 8th Wonder of the World.
He knew the secret to building wealth. Save for retirement early and often.
Even if it’s just $10 a month. Save and invest now.
How to implement: Making additional contributions to super can be completed via payroll (salary sacrifice), or from your after tax income by making personal contributions. Often these additional contributions will save you tax along the way.
9. Automate Everything
Why make your life more difficult?
Automate your finances!
This means automating:
- Paying off your credit cards
- Saving in your emergency fund
- Investing in your retirement account
You will thank yourself later.
How to implement: Do you schedule your recurring payments in internet banking? Do you have multiple bank accounts for different purposes, and transfer between them? Contact us to discuss our best practice bank account management guide.
10. Prepare Your Wills/Estate Documents
Protect your family by preparing your wills/estate documents.
Don’t leave it up to the government to decide the fate of your family’s wealth. You don’t need to be a millionaire to do estate planning.
Estate documents include:
- Your Will
- Testamentary Trusts
- Enduring Power of Attorney (for Financial Matters)
- Enduring Guardian (for Health Matters)
How to implement: Schedule an appointment with your solicitor today. If you don’t have a wills and estates lawyer, we can recommend one.
If you have any questions in relation to the above or want to schedule an appointment, email info@lmsadvisory.com.au or call 02 9891 9333
