Smart ways to manage cash in retirement

Recently, we’ve noticed more people are becoming concerned about their money. In fact, research shows half of all Australians are worried about how to manage their money on a day to day basis. If that sounds like you, imagine how good it would feel to be on top of your finances, with some left over. 

 

WANT TO GET YOUR PRIORITIES SORTED? 

A well-managed cashflow could be the key. Your cashflow is the amount of money that’s coming in and going out of your bank account at any point in time. It’s not a measure of overall wealth, but whether there’s enough cash available to meet your expenses, with some left over. If your cashflow isn’t in check, you might find it difficult to pay your bills on time or end up relying on credit. 

Cashflow is the management of income and expenses. It is ensuring that money is available to pay the bills as well as unexpected financial surprises. In retirement, this becomes especially important when your Income is likely fixed and often paid monthly as opposed to wages/salary which are often paid fortnightly. For this reason, understanding the difference between essential spending, which is the payment of regular bills like rates, electricity, registration, groceries, etc., and lifestyle spending such as travel, dining out, theatre, etc. Ensuring funds are always available for the essential requirements is the first step to cashflow management.

 The second step is having a cash reserve account. This should work independently to essential and lifestyle spending to cover the unexpected such as a new washing machine or car repairs. These types of items are not normally included in a budget (yes even in retirement a budget is a requirement) but do happen from time to time.

 

HOW CASHFLOW ADVICE CAN HELP 

Cashflow advice can help you improve your spending and saving habits, while positioning your finances for longer term growth. You will: 

• Learn from experts – be coached on how to approach your finances and set them up for the future.

• Get a better understanding of your spending habits – by taking a step back and looking at the whole picture.

• Create a workable budget – work with an adviser to build a budget that fits your lifestyle and priorities.

• Save money – by exploring the different saving options available
to you.

• Save time – with access to tools and tips that can help organise and automate the management of your money.

• Stay on track – with regular check-ins, to make sure you continue to head in the right direction to meet your goals.

 

STEPS TO YOUR IMPROVED CASHFLOW 

While the process for getting your cashflow sorted is relatively straightforward, for some it can be an eye-opening experience. Our cashflow advice generally follows these steps:

1. UNDERSTAND YOUR GOALS 

Talking to you about your goals now, as well as your future goals will help us be clear on what you want in life, so our advice can help get you there.

2. UNDERSTAND HOW YOU’RE SPENDING YOUR MONEY

We’ll spend time looking at how you’re spending your money and where improvements can be made.

3. BUILD A SOLUTION THAT FITS YOU

We’ll then look at ways to help get your finances in order by working with you to build a budget and cashflow solution that fits your life. We’ll talk to you about your priorities and areas where you might be able to save.

4. PROVIDE ADVICE, TIPS, AND TOOLS

We’ll then provide you with advice based on your personal circumstances. It may include recommendations for tools that can help you manage your money more easily. We’ll only ever recommend tools that fit your needs, and you’re under no obligation to use them.

5. CHECK IN WITH YOU

Once you’re happy with the recommended cashflow approach, if you like, we can set up regular check-ins to make sure things are going to plan. And because life can change in an instant, we’re available to help you navigate any unexpected events as they arise. When you’re ready, we can also talk about the other goals you’d like to reach, and can provide advice on how to achieve these, too.

 

WE’RE HERE TO HELP 

If you’d like your money to work even harder for you, then contact us today. We can show you simple ways to manage your money. Fitting it into your lifestyle, so you can focus on saving for other goals, or simply enjoying the results. Just give our team a call or email me to set up a complimentary meeting. 

Wayne Haller Pty Ltd (ABN 18 010 334 102), trading as Hallerwealth is an authorised representative and credit representative of Hillross Financial Services Limited ABN 77 003 323 055, Australian Financial Services Licence and Australian Credit Licence No. 232705 

This information is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters.

 

hallerwealth.com.au