The Federal Budget - What does it mean for you? Keep Calm and Focus!
Ch - Ch - Ch - Ch - Changes...sings David Bowie in one of his classics.
A change is one thing that will always be a part of our lives.
In fact, the only thing that will never change is the change itself.
What does this have to do with the Budget? Everything. It’s
all in the attitude.
The Budget never fails to surprise us, it never fails to
headline in the media and create a buzz for right or wrong reasons...
One would think it's the most important economic / social /
financial event of the year with consequences that will greatly affect us all.
Hm, well, not really... At least not in the big scheme of
things.
Please don't get me wrong, the financial magicians, the
economists, the financial planners will analyse the hell out of it and search
for the loopholes, opportunities and consequences for their clients. It's their
job to do it. But for the vast majority of us... keep calm and stay focused.
It really comes down to everything we ever talked about -
Focusing on and controlling things we actually have any chance of controlling.
And the yearly budget, together with interest rates, the market, or any other
financial noise is just not one of those things.
There will be changes and there are a lot of topics to get stuck into: the economic growth, the GDP, the dollar, the deficit, the Centrelink benefits, the income tax cuts, the super changes ... Etc.
If the yearly budget does affect you in any way, your trusted adviser will definitely contact you and let you know. It might require a little tweaking of your contribution strategy or structuring of your assets.
However, they're not going to be the end of the world changes.
You still will need to spend less than you earn to get ahead with building your
wealth, you will have to keep being patient and disciplined with your
strategies.
'The universal principles and practices of successful investing and
preserving of your wealth will continue to be relevant.'
Leave the rest up to your adviser... and if you don't have one, no budget will save or destroy you. It will be done by YOURSELF.
by Michal Bodi