Financial Planning for Tradies: Thinking beyond today
It’s normal for tradies to think about the present only. However, as long as this world continues on you must have a plan of action for yourself, your business, and your family for the future. You don’t have to become consumed with the future, but you do need a financial plan. Financial planning for tradies encompasses a number of concepts and services that can help you today and beyond.
Financial Planning for Tradies: What services will you need?
It’s important to understand your needs when it comes to finances. Consider the fact that as a tradesman, you have overhead to think about as well as growing your business. What kinds of financial planning do you need to feel secure?
Financial Planning for Tradies: Insurance cover
Tradie Insurance – One of the first things you need for your business security is the proper insurance cover. A qualified, local insurance broker will help you discover what cover is suited to your situation. Some cover options included with tradie insurance are income protection, tools of the trade cover, and public liability.
Personal Insurance – Your business and any employees who work for you need to be covered, but so do you and your family. What about when you are not on the job and something happens? Personal cover is important to your financial security. Financial planning for tradies should include personal cover and financial planning.
Financial Planning for Tradies: Loans and mortgages
Loans and Mortgages – What do you do about getting your tradie business up and running or expanding it? Whether you are getting ready to start your own trade business or you are ready to expand your current business, loans and mortgages are part of your financial plan. Loans help you obtain the equipment, tools, and machinery you need to perform your job, while mortgages help you get financing for a building for your business. Financial planning for tradies includes starting, expanding, and buying property for your business. These same resources and mortgage brokers can also help you obtain personal financing.
Financial Planning for Tradies: Financial accounting and investing
Accounting and Bookkeeping – It’s important to keep track of your debits, credits, payroll, and taxes. Accountants and bookkeepers are the professionals that work with you and for you, providing services to keep your business in business.
Investing – Accountants and financial planners often provide information and advice regarding investment options for tradies. Financial planning for tradies doesn’t have to include investing, but if you have a little to invest in low-risk investments, it’s something to consider in your financial plan, both present and future.
Financial Planning for Tradies: Future planning
Retirement Planning – Most people don’t want to think about the future in terms of retirement while they are still young and working, but it’s important that you do. Financial planners are the key professionals who work with you on preparing you to live a good quality of life beyond your working years. Financial planning for tradies should include a retirement plan that suits your lifestyle.
Wills and Estate Planning – You may not want to think about it, but what happens to your business, home, and family after you’re gone? Including a plan of action in case something happens to you is important to everything special in your life. The earlier you get started with a good wills and estate plan, the more secure you will feel over the course of the years. As you move forward, this part of financial planning for tradies will change from time to time.
These are the basics of financial planning and the financial solutions to consider according to your circumstances. A plan with all these services in place is the ideal solution for your own peace of mind, but you can also start with what you cannot do without and add services as you see fit over the course of time. Financial planning is a very personal and personalised concept that integrates a number of services that all have one primary goal in mind; your financial security.
If you do need a good finance and mortgage broker to help you with financial planning, try contacting a financial and mortgage broker from our Tradebusters Academy network. These brokers specialise in helping tradesmen in business and we are sure one would be a good choice for you.