Looking in before looking out

by Ben Kemp

2023, another year of financial uncertainty… well if the media is anything to go by it is the year of rising rates, plummeting property prices, share market carnage and complete anarchy across the board.
Just like their 2022, 2021 and every other year prediction I suppose.
Negative news sells and drives conversation and consumption, we get it. The rational minds can step back from this and look inwards, before looking outwards though.

Every household, every individual is its own micro-economy and is what needs to be always considered first, before making decisions in relation to the broader macro-economic outlook.

What does this really mean though?
Some starting points to consider and how we start all of our client engagements!

What is your household income?
What is your household expenditure?
What assets do you own?
What are your loans and liabilities?
Do you have any expected changes to these in the short or medium term?
Simple but effective, take stock of what you have first and determine the path forward next.

The example of what we see all too often are phrases such as this:
“I think property is going to go up so I want to buy”
“My friend made heaps of money from the share market and I want to do that”
“I think it’s a good time to buy ………. (insert random asset)”

Ultimately, don’t let markets and conditions be the driving force. Yes, it is a massive consideration for what to do, but only once you’ve established a thorough understanding of your situation and what you can safely do with your personal means and circumstances in mind.

This blog contains information that is general in nature. It does not take into account the objectives,
financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

If you decide to purchase or vary a financial product, your financial adviser, AMP and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.

PB Financial Solutions Pty Ltd ABN 67 097 381 523 – trading as Burke Britton Financial Partners & Securelife Financial Solutions is an authorised representative and credit representative of AMP Financial Planning Pty Limited, Australian Financial Services Licensee and Australian Credit Licensee.

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