Creating new year financial plans to turn into financial actions‪.‬ Finance & Fury Podcast

Welcome to Finance and Fury. I hope you all had a good Christmas – if you are like me might be a few kg heavier.
This episode – be looking at making new year plans – new years is upon us – many people have new years resolutions.
To start with - looking back on the year, are you in a better or worse financial position – been a tough year for a lot of people
But in todays episode - how to be in a better financial position this time next year Going to look at how you can always be ahead on finances compared to last – through planning and then next episode is about how to act on those decisions Because - like compounding of investment returns over the years, the little things you do in your own personal life compound over time as well This can occur in both directions – both backwards and forwards  
What are your financial goals for this year? Or new year resolutions?
Maybe you haven’t thought about them yet – the new year may be a few days away – or already occurred by the time you listen to this – either way - By the end of this episode you should hopefully be able to think of at least 3 and something to put in place to help improve your financial life Now - Financial goals are related to ‘what you need money for’. Many goals may relate to your personal life - Most people have goals that related to other goals outside of their finances When looking at financial goals – these will also vary between individual to individual – broken down between short and long term Short term goals, this could be saving for a deposit on a home, getting out of debt, or saving for a holiday Long term goals, I find that these are mainly around financial independence, or things that take a long time to achieve like a passive income. I meet a lot of people with goals – but most of the time these are conceptions about what they would like to achieve – not technically a concrete goal There is a difference between saying that you want to retire financially independently – versus saying that you will retire at the age of 60 with $100,000 of after tax income derived from a portfolio of shares, superannuation and an investment property Even this can be broken down further – with an allocation to each – where the IP will generate $20k after costs, the shares $15k with FC to offset the tax and the remaining $65k coming from super To achieve this though – you need to get down into the nitty gritty details But like most things – this doesn’t happen overnight – can’t just click your fingers and be in this position out of hopes and wishes – some work needs to be put into it But the first stage is planning – planning on what you want and how you are going to get it – The first stage of planning is clarifying what you want – which comes back to goals Looking in the short term – and relating to this episode – it may all be about being in a better position in 12 months’ time compared to where you are today – but What does this look like? What you can do – In general terms – there are categories which most fall Reduce tax, save money, build wealth – start investing, Increase income – Salary, investments Hard to generalise these things – but at the same time – each of these are simply a wish list – not actual goals – hence why setting goals around these is important If you wish to reduce your tax – by how much – and is it possible – then how will you achieve this? Of if you wish to build additional wealth – by what mechanism will you achieve this by?  
So - What are your financial goals?
Not many people stick to new year’s goals. There can be too many, normally people think this is good to have a lot of goals But it can be a determinate – too many goals can create information overload, decision fatigue and many other psychological conditions where the easiest solution it to just do nothing different We are creature of habit – hard to