Map out your approach to FY21 with the seasons of finance

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financial planning

This article is sponsored content brought to you by Credabl.

Preparing a stable and growth-centric strategy for your finances ahead of the new financial year will mean you can take advantage of peak periods and keep yourself afloat during slow seasons. 

As the seasons change, so too do the things you need to consider when it comes to your personal and professional finance. 

April, May, June: get prepared

June used to be the pinnacle of EOFY—a time when your finances and the future of your practice may be under the microscope. Perhaps you’re searching for ways to fill the gaps between what you’ve budgeted to spend and your shopping list for new purchases and upgrades, or maybe it’s been a while since you had a good look at your practice’s existing assets, such as equipment and fitout. Speaking to your accountant and Financial Planner early is a good idea if you’re looking to invest in new technology or improvements to your practice. Taking advantage of the instant asset write-off which has been increased from $30,000 to $150,000 for Australian businesses with an aggregated annual turnover of less than $500 million (up from $50 million), for all eligible assets first used, or installed ready for use by 30 June 2020 is a great way to claim deductions. A common misconception is that you can only get the instant write off if you pay for the goods. This is not true, you can borrow the funds and still receive the benefit. Interestingly, often the interest on a loan over say three years will be similar to the interest you can earn on the equivalent cash in the bank. Plus, with the GST refund at June 30, you technically don’t have to make a repayments from your own sources for at least four months so definitely a good cashflow strategy too!

July, August, September: Beat the winter blues

With the housing market on the improve and prices in some areas starting to creep, Winter is the perfect time to ensure you are in a position to act quickly to secure a property in the Spring buying season. Putting a pre-approval in place will safeguard against specific lender policy exclusions which you may not expect. All lenders are subject to the same regulatory environment, BUT every lender still has its own policy for lending and there are some lenders with niche specialties which impact their loan structure. For instance, at Credabl, our home loans are crafted to cater to the needs of professionals. So, you can borrow up to 90% without LMI. You can also get a fixed rate loan with an offset account. Those aren’t loan types you’re likely to secure elsewhere. Get your approval in principle in place to bid confidently at auction or private treaty.

With your home loan pre-approval in place you can dedicate some time to house hunting with certainty, knowing what your price range is and whether you’re seeking out a home to live in or an investment property. 

October, November, December: spending season

Holiday season budgeting tips will be front and centre of every newspaper, magazine and social media outlet as we approach the end of the year. That means it’s a good time to re-consider whether you need all those credit cards! Credit cards are a valuable part of managing and using your disposable income. However, it’s how you manage the cards and the number of cards that you have that needs to be considered.

Remember, if you only got your card for the frequent flyer points—and let’s be honest, who doesn’t love points—then you’ll be pleased to know you can earn points in other ways. Credabl offers 1 Qantas Point* for every $1 borrowed on business loans, uncapped.

January, February, March: stock up

January and February are a great time to look at replacing vehicles as dealers often have run out sales on the previous year’s models and have display cars to sell. 

It’s also a good time to consider buying equipment ahead of the end of the BAS quarter in March. The GST refund is always handy for cashflow later in the year. Of course, you’ll have to take into consideration how to pay for the equipment—cash, credit or finance? Varying loan structures, including the ability to pay down to nil with no need for a balloon or residual payment at the end of the loan term can be customised for your specific needs.

Contact Kelly Gall or another member of the Credabl team today to find out about achieving your ambitions both this financial year and next!

Kelly.gall@credabl.com.au 

www.credabl.com.au

1300 CREDABL (1300 27 33 22)

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