In business and in your personal life it pays to be money smart. You work hard for your money so you should make it work hard for you.
This week is MoneySmart Week, Australia’s first ever financial literacy awareness week. The week is an initiative of members of the Australian Government Financial Literacy Board, led by money expert Paul Clitheroe AM.
There is a free, online tool that provides a simple action plan to help you to improve your financial wellbeing: the Money HealthCheck. The check takes less than 10 minutes to complete and covers your financial goals, income and expenses, managing debts, saving and investing, asset protection (insurance), superannuation and retirement and estate planning (wills).
Simple steps can make a big difference to your finances. While the check is more about personal finances, business people need to get that house in order too. I am adding a couple of money smart tips for business people here.
First, you need a business plan which includes a financial plan with targets. It is surprising how many small business people don’t have one. You also need a budget to know what money you need to make to cover expenses, and to check whether your business is on track.
Business people also need adequate insurance. Not just for their stock, staff, buildings, cars and other equipment but also for the other important asset, the business owner. Particularly for small businesses or sole traders, income protection and life insurance may be something you want to consider. What happens to your family and business if you become sick or injured and can’t work?
Lastly get the right business finance. That may mean a loan but it could mean an overdraft, a credit card or hire purchase. Talk to your business banker about the right options for you. Don’t be afraid to ask questions.
Do your Money HealthCheck today at http://moneysmartweek.org.au
Greg Taylor is Deputy CEO and Chief Financial Officer for the Hunter-based Greater Building Society. This blog also appeared in the Hunter Post September 5 2012.