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: a spending plan

Having a solid budget or spending plan is key to keeping your finances in check. It's all about making sure your money matches up with what's coming in and going out each week. A simple goal to aim for is to spend less than you earn, and ensure you keep it that way. After that if you need to rebuild your budget: a good way to get going is to write down your income and expenses. For your expenses highlight your basic core needs — housing, groceries, transport and utilities. After that scroll through the remainder of your expenses and either a) ensure you’re getting the best deal or b) see whether you’re able to cut back in that area.

If you're on the lookout for a system to help you out, definitely give the Glen James Spending Plan a look. It's a great way to organise your cash flow, track your spending, and stay on top of your financial game. Take charge of your money and reach your financial goals.

foundation 2: cashed up & debt free

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!

Let's not forget about the emergency fund. Picture this: you've got 3 to 6 months' worth of expenses stashed away, just chilling for any unexpected curveballs life throws your way. It's like having a financial safety net ready to catch you if you ever fall. Having that cushion means you can handle whatever life decides to throw at you without breaking a sweat. So, yeah, definitely don't skip out on building up that emergency fund - it's a total game-changer.

foundation 3: protection plan

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. It's all about making sure you and your loved ones are covered if things take a turn for the worse.

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 read reach out to our team to talk about your own needs.

foundation 4: Wills & estate plan

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 + career

Superannuation serves as a steadfast and tax-efficient method for securing your financial future. It's prudent to periodically review your contributions, which can easily be done by consulting with your employer or manager, or by examining your contract terms if you're on one. It's a regulatory requirement for employers to contribute to your super at least every quarter, though it's advisable to verify that they are fulfilling this obligation.

Your career trajectory also plays a pivotal role in your financial prosperity. As you undergo training and gain experience, you position yourself for higher-paying opportunities, thus giving your overall wealth accumulation a boost. Each career advancement represents another stride toward financial security, making it imperative to remain diligent and proactive in nurturing your professional growth.

your walls: lifestyle goals

Then we move onto the fun stuff! These expenses encompass desires that can enrich your life without being essential for survival. They're like the extra toppings on a pizza - nice to have when you can afford them, and tailored to your needs and wants.

For instance, setting aside funds for your children's education ensures they have the resources they need to succeed in the future. Similarly, upgrading your car or house can contribute to your comfort and convenience, aligning with your evolving needs and circumstances. You might have a desire to travel as travel experiences bring great value to your life.

These lifestyle purchases are tailored to you. While these desires can enhance your life, it's essential to weigh them against your financial priorities and make informed decisions that align with your long-term goals. Make sure you aren’t missing out on investing for your future!

your roof: investing in shares or property

Alright, let's dive into the exciting part! When it comes to building your financial portfolio, diving into shares or property can be a game-changer. But here's the deal: it's best to tackle these investments once you've nailed down your other financial foundations and lifestyle goals. Think of them as the cherry on top of your financial sundae - not the first scoop.

Get your spending plan, emergency fund, and other essentials sorted first, then consider venturing into shares or property. By prioritising these investments later on, you'll ensure a more stable financial footing and set yourself up for long-term success. So, hold off on the shares and property until you've built a solid financial foundation - it's worth the wait!

If you’re new to investing and keen to start focusing on it more, then check out Glen and Nick’s book, The Quick Start Guide To Investing! It gives you everything you need to go from zero to investing in the way that suits you and your goals. Order a copy now!