We’ve just spent Sunday enjoying some corporate hospitality as guests at the 2008 Gold Coast Indy. It was a glorious spring day, all warm sunshine and light sea breezes.

Sitting opposite the pit lane, you couldn’t help but be impressed with the efficiency of the pit teams who operated like a well oiled machine. As drivers entered the pit, wheels were changed and cars refuelled in a matter of – not hours, not minutes – but seconds. It makes you wonder why it takes hours to change the tyres on the family sedan doesn’t it?

When thinking of Indy, fast money, fast cars and fast women tend to spring to mind, and maybe not in that order depending on whose doing the thinking. When times are good and drivers are on a roll, earnings accelerate through generous sponsorships, prize money and team contracts. But I can’t help but feel given the gathering stormy economic clouds that the brakes may be biting on the good times and drivers may find their income slowing down.

It got me thinking, what does a racing car driver do when it looks like their source of cash is drying up; in fact how does anyone who relies on an erratic means of earning a living manage their cash flow?

If the business you’re in means your activity and income is concentrated in a few months of the year, you may find it difficult to organise your money so you can meet your outgoings all year round. There are ways of managing an erratic money flow and working with a financial planner can help you fine-tune your wealth management.

If your cash flow is slowing down, your adviser can work with you to even out the bumps such as putting your insurances into super, or reviewing your lifestyle to see if it can move down a gear or two. This will help you avoid resorting to fast but costly forms of finance such as credit cards.

It’s never too soon to prepare for the future and your adviser can help you to start an investment portfolio that will last the distance until your retire. You don’t need a large amount of capital to start, just a steady contribution that can be adjusted along with your lifestyle.

Lastly, make sure you organise a meeting with your financial planner a few months before the end of the financial year. By this stage, most people have a good idea on what their yearly income is likely to be and your adviser will work with you to put in place some tax effective strategies.

Remember, working with your financial planner will help stop the wheels from falling off in your life when the road gets rough.

Please Note:

This publication has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, you need to consider (with or without the assistance of an adviser) whether this information is appropriate to your needs, objectives and circumstances. This information is provided for persons in Australia only and is not provided for the use of any person who is in any other country.

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