Thread: What is your dream for 2014?

G'day all,

Firstly, I hope you have had a great Christmas and New Year and are fully refreshed. You still maybe on holidays, lucky you. Over the break, I thought long and hard about my goals for 2014, as I am sure you did as well. It’s a time for reflection about where you are and where you want to be. I’m like most people in that we do what we do and we dream about what we would love to do. For me it is that one day I would love to farm Boer Goats amongst other stock. It is a passion for me and something I oft dream about. Now that’s not to say I don’t love what I do now and would continue in my current profession as I love helping people achieve their goals and ideally their dreams.

So what is your dream?

How do I turn my dreams into a reality? I am just like most people my age. I have a family to support, bills to pay, stresses and dreams that I want to fulfill. I went and saw “The Secret Life of Walter Mitty” the other day. My father used to call me Walter Mitty when I was a child as I was a day dreamer. Today, I am still much the dreamer, but as Walter eventually does in the movie, he turns dreams into a reality. Yes, it is a movie, but what it showed to me is that actions will lead to dreams becoming a reality. In many instances, if someone has achieved something considered extraordinary, it can mean we can all be extraordinary if we believe in it and take that first step.

So what has any of this got to do with financial planning? In my opinion, it has everything to do with financial planning. As I have said in previous updates, bar a healthy inheritance or winning lotto, the way we will achieve our goals and ultimately our dreams in life will be through the income we generate coupled with hard work and perseverance. The problem is, and I have been one of these people in the past, you maybe one of these people or would know someone who is, and that is a person who works hard, generates income but find it hard to achieve your goals. That goal could be to make it through to next pay day, pay school fee’s, annual holiday, upgrade car, house reno’s and the list goes on endlessly.

Now the first step towards achieving your goals and dreams is cash flow management. Think of yourself as a business. A business needs to generate income; it has costs (fixed and variable) and wants to generate a profit. Companies have a vision and a strategic plan to achieve it, do you? We plan at work so why not at home?

Things to consider:
• How do I collect and manage my income…how do I know what I’m earning?
• What about my costs/expenses, what are they, how do I find out…how do I manage and monitor them…do I need to break them down into categories?
• How do I determine my profit, after my earnings less expenses?
• How do I know if my profit is good or bad relative to other “businesses”?
• And once I have this all under control what of my future? Where do I want the business (i.e. me) to be in 1, 3, 5…10 years time. What capital requirements will I need to save for or finance in that time?

There is a lot more to cash flow management than what I can put in writing here today. However, if you want a handy tool to get started, message me and I can send you through an excel spread sheet where all you have to do is enter your data. It will give you a snapshot of where you are today. Then if you want to take it further, then take advantage of a free financial health check up with myself or come along to a seminar that I will be holding. You can improve your situation or make it even better through education and advice. The ball is in your courtJ. I can show you just as I have shown myself that dreams can become a reality…….if you take that first step.

Appropriate Quote

“To accomplish great things, we must not only act, but also dream; not only plan, but also believe.”

~Anatole France

Here’s to an extraordinary 2014 for you and all that you want to achieve, I look forward to hearing from you,

Regards

Stevo

Originally Posted by bemm52

I hope I haven't poked the tiger here ................but I plan to retire in November.


Cheers Paul

Top stuff, so now you would be entering the wealth preservation phase. If you haven't it can be worthwhile seeking advice in this area to ensure you preserve your investments and see what you are able to claim.

As an example, my mother ( before I entered this field) retired then went back to work. On advice from her bank she pulled her money out of her super environment and stuck it in the bank . She thought getting 4% return was good. Had she received advice, she would have realised that a) the bank wants her $$$ to lend, b) that take 2.5% out for inflation she is in reality only getting 1.5% return and c) as she has a history of longevity on her side of the family if she kept in super in a balanced to moderately aggressive fund, she'd be getting between 8-12% return. On top of that she could be salary sacfricing most if not her whole income and drawing it out tax free.

Suffice to say, I am now sorting that out for her. So Paul, I hope unlike so many others, that you have all your ducks in a row and retirement is going to be a joyous occasion,

Regards

Stevo