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You would be wise to invest that time in framing a budget for the next financial year, says Chris Manwaring, chairman of the Financial Planning Association’s (FPA) Riverina chapter.
From Saturday, electricity charges will leap nearly 20 per cent and natural gas prices will rise more than 6 per cent, placing massive pressures on the budgets of families, many of whom are unlikely to win pay rises more than 2 per cent this year.
In light of the disparity, Mr Manwaring said family budgets were vital to make ends meet, and so too was people talking with their partners about preparing that financial plan together.
“That is what a lot of people don’t do – speak with their partners,” Mr Manwaring said.
“The end of the financial year is a great time to look at your situation.”
Mr Manwaring was speaking ahead of a FPA roadshow in Wagga during which the organisation’s head of professionalism, John Bacon, spoke to members about the latest changes to educational standards in their industry
“There is a lot of change in our space, and we are updating members about it,” Mr Bacon said.
“This year’s focus is on educational changes for financial planners.
“New entrants into the industry will need degree qualifications from 2019 and existing planners will need a degree equivalent.
“There is a transition into this arrangement over the next two to three years.”
Mr Bacon agreed with Mr Manwaring about the importance of family budgets, as well as three other important personal finance tips – superannuation, reviewing spending and consulting with a financial planner.
They said families and individuals should use the opportunities provided by superannuation to save tax, including salary sacrifice.
“There are still too many people who are unsure of the benefits of that strategy,” Mr Manwaring said.
He said people should review their home loans to make sure they are getting the best deal and reduce debt, starting with owings that attract the highest interest rates, such as credit cards.
The FPA has launched a website moneyandlife.com.au, which offers common personal tips, including financial audits, superannuation, life after work, wedding planning and four steps to a better retirement.
On a brighter note for families struggling to cope with higher energy bills, Mr Manwaring said a drop in oil prices recently was tipped to flow through to lower petrol prices in coming weeks.