Glen James's sound financial house - sort your money out

Here’s Glen James’s sound financial house - how to build solid financial foundations for your life.

Glen has created the sound financial house (below) - an image that shows how you can achieve what you want with your money with plenty of protection in place. Read on to learn about what each part of the picture includes:

Foundation 1

You need a working budget or spending plan. This manages your money each week around your income and expenses. If you’re looking for a system to use, check out the Glen James Spending Plan.

Foundation 2

Consumer debt is a huge weight that will only pull you down financially. You’ll do so much better moving forward if you kick it to the curb. Consumer debt includes credit cards, personal loans and buy-now-pay-later schemes. Don’t get sucked into these again!

This also includes an emergency fund of 3-6 months worth of expenses for any unplanned costs.

Foundation 3

A protection plan means you have your personal insurances sorted, so if the worst should happen, you have a buffer to help you or your loved ones as you sort things out. Policies to consider include Death cover, Total & Permanent Disability (TPD) Cover, Trauma or Critical Illness cover and Income Protection (or salary continuance). If you need help with any of these, reach out to our team.

Foundation 4

This sets up the framework you want your loved ones to follow in the instance of your death or ill health. The documents to consider here include your Will, Power of Attorney, Enduring Guardianship and Advance Care Directive. If you need help with any of these, reach out to our team.

Your floor: superannuation

Superannuation is a consistent and tax-effective way to save for your future! Check in with your boss or manager (or contract) to see how much is contributed each pay cycle. Employers must contribute at least every quarter (do check they are doing this).

Your walls: lifestyle goals

These expenses are the things you’d just love to have in life! They aren’t your core essentials required to live, but you’d love to have them if there’s money available for them.

Your roof: investing in shares or property

Now for the fun stuff! Investing in shares or property is a great thing to add once your other foundations and lifestyle goals are on track. Don’t start with these, finish with these.