Are money worries weighing you down?

Words KATH ORMAN

Do you find it hard to keep your head above water and are just surviving from payday to payday? Please do not feel that you are alone.

We usually associate weight management with the extra kilos that may have crept on (especially during the Coronavirus).

However, carrying around the worries of not being able to pay the bills or manage your financial situation is also a burden to your health.

Just yesterday, I had a new client come in for her second appointment. At her first appointment, we looked at the ‘big picture’ of her life. We discussed where she is now and where she wants to be. This takes in not just the financial situation, but various aspects of her life that she wants to change or achieve. We also discussed how to accumulate wealth and possible tax-saving strategies. I like to increase clients’ knowledge about investing, to take away the fear and enable them to make informed decisions.

We found that she knew how much income she was receiving but had no idea how much she needed to pay all the bills. She did not have a current will in place and did not know that she needed to have an enduring power of attorney as well. The nomination of a beneficiary on her superannuation was in place; however, it could be restructured for an enhanced outcome when she passes. Over the years, I have seen many people who give their super fund statement a cursory look when it arrives and then file it away. Imagine their shock when I point out that their ex-husband or ex-wife/partner is still nominated as their beneficiary!

Getting back to my new client’s first appointment – after our initial discussion, her homework list included: 1) provide copies of payslips; 2) budget (we provide a template); 3) write her wish list of short-, medium- and long-term goals; 4) provide details of all super funds; 5) provide details of current personal insurance cover; 6) update will and enduring power of attorney; and 7) read the investment material provided.

She commented that in the back of her mind, she knew all these things needed to be addressed, but it was too hard and overwhelming. However, someone giving her a homework list for her life gave her the challenge to address all the issues.

At her second appointment yesterday, she proudly advised that she had done all the things on her list. This meant we could formulate the next steps to help her achieve the things on her wish list.

She had a big smile on her face, her body language showed she was in control, and she said, “I feel like a big weight has lifted off my shoulders”.

Kath Orman is a Senior Financial Planner of her company Goals & Dreams Financial Planning Pty Ltd, which is an authorised representative of Charter Financial Planning Limited AFSL 234665. If you would like to know more email: kath.orman@goalsanddreams.com.au or phone: (07) 3350 9595.