Five steps to a great financial plan

Tips for a great financial plan.

Follow these five steps to wealth creation and build your future on the strongest financial foundations:

  1. Goals will keep you motivated. Set goals that are meaningful to you and prioritise and schedule them.
  2. Planning will give you a roadmap. Break each goal down into easy steps and come up with an action plan based on these steps.
  3. A budget will boost your savings. Take stock of your current financial position (income, expenses) and look for ways to save on essentials (food, utilities). Set a budget for extras (holidays, entertainment).
  4. Insurance and savings will protect your wealth. Your income is your biggest asset and worth insuring. Save 3 to 6 months' salary for emergencies. With savings and risk insurance in place, you can avoid resorting to expensive credit cards and loans if you have short-term financial issues.
  5. Investing will give you a new source of income. Start investing early to benefit from compound interest. Choose investments to suit your finances, goals and needs. Get professional advice.


Adapted from the Financial Planning Association of Australia’s Money & Life eBook and reproduced with permission. Please also read the RACQ Bank disclaimer below.

RACQ Financial Planning Pty Ltd is a Corporate Authorised Representative (Representative No. 293929) of Actuate Alliance Services Pty Ltd, AFSL 240959, ABN 40 083 233 925 (Actuate). Actuate is a wholly owned subsidiary of IOOF Holdings Limited ABN 49 100 103 722. This document contains general advice and/or information prepared without taking into account any persons’ investment objectives, financial situation or needs. Investors should consider whether any general advice is appropriate having regard to their financial objectives, situation or needs.