Many people take the opportunity that a new year brings to start afresh. As the clock strikes midnight on the first of January, it feels like the perfect time to reset – in all areas of your life. So, it’s no surprise that most resolutions focus on one of two things – health or money.
This does not constitute advice and advice should be sought in all instances before acting on it.
Of course, to have the healthiest and happiest 2019, you should work on perfecting both – while we can’t help with your health, we can help you sort your finances.
Getting personal
In reality, you want your finances to be healthy now, as well as in the future. To put yourself in good stead for years to come, you should look at a three-pronged approach – set yourself short, mid, and long-term goals.
Short-term financial goals
Short-term goals help build your fiscal confidence and set up good spending habits that will help you reach future goals. Short-term goals could include:
- creating a budget (and sticking to it!),
- establishing an emergency fund,
- paying off small debts from credit cards or personal loans.
Mid-term financial goals
Mid-term goals usually focus on good wins that will help you become more self-assured when dealing with money. These might include:
- paying off student loans or larger personal loans
- securing life insurance,
- choosing critical illness cover or other forms of income protection.
Long-term financial goals
Long-term goals such as saving for retirement through pensions and other investments are often under-prioritised because it all seems so far off. However, my advice is to get a handle on your retirement savings strategy early on life. This will considerably increase the final amount you’re left with when the time finally comes.
Go pro
While you’re tackling your personal financial goals, it’s the perfect opportunity to overhaul your professional finances as well.
Experience shows that the easiest way to improve your business finances is to reduce operating costs and overhead business expenses.
The first thing you should do is review your budget and forecast. This will allow you to see all the costs you’re incurring and when they hit your account. Evaluate your expenses with a critical eye, but take care not to slash costs too enthusiastically – you do still have a business to run, after all. Rather, you should exercise rationality when looking at how much you’re spending and be realistic when allocating your financial resources based on your priorities.
Saving money can be as simple as getting a handle on how you run your business.
By introducing a business management system, you have increased visibility on costs and you can decrease the amount of time it takes for you to take care of your finances each month, leaving you more time to dedicate to improving your business.
You should also consider who you’re working with – suppliers and vendors alike. If you can, consolidate the number of companies or people you work with or think about outsourcing certain areas of your business to streamline operations and lower costs.
Let us help you get off to a good start in 2019
Meet with your financial advisor for a complete evaluation of your financial needs and goals to start 2019 on the right foot.
Need help with your finances this year?
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Dental & Medical Financial Services have been helping doctors and dentists to build and protect their wealth, whilst saving tax for over 25 years.