3 steps to build your financial future
Have you noticed that as you get older, the years seem to go by faster and faster?
You get invited to your best friend’s 40th birthday party, when it just seemed like yesterday that you were in university!
It doesn’t matter if you’re a Generation X, a Generation Y or a Baby Boomer, it’s important to set goals for your financial future now.
Here are 3 things to focus on as you build your financial future
1 Examine your personal situation
It’s a good idea to examine your personal financial situation a few times a year.
Everyone’s circumstances will change depending on where they are in their life:
- Generation Y – pay off any outstanding student loans; once you’ve done this, it’s time to start saving for a house deposit.
- Generation X – if you’re raising children, this can feel like an impediment to saving money. We can help you figure out how to save money each week (link to page)
- Baby Boomers – if you’ve paid off your mortgage and the kids are off your hands, you’ll be eyeing off what life will be like when you’re no longer working.
2 Start saving a little more
Saving a little more each week doesn’t mean that you have to start eating 2-minute noodles for dinner!
It can be as simple as starting a savings account that has a regular amount of your salary transferred into each pay.
Start with $100 a pay and pretty soon, through the power of compound interest, you’ll have a healthy looking savings account!
Another way to save more money is to make extra contributions to your superannuation account.
One of the main benefits of having a salary sacrifice arrangement is that your extra contributions are taxed at a lower rate (the superannuation tax rate of 15%) than your marginal tax rate (which can be up to 47%).
And as you’re saving more for your retirement, you accumulate more superannuation!
3 Look after your health and wellbeing
High health care costs can destroy a lot of retirement plans.
Sure, there will be unexpected illnesses and accidents. But looking after your physical health now can help reduce the likelihood that your health care costs will blow your budget.
Look at your current health objectively and ask yourself, “Would I feel better and have more energy if I lost some weight and exercised more?
If you haven’t been to your doctor for a full medical check, make an appointment.
Investing in your health and wellbeing now will be worth it in the future.
Taking some time to consider your financial situation now will help you feel more confident about your financial future.
We’d love to help you out and offer a FREE consultation to help you get back on track.
The advice provided in this blog is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. For our full disclaimer, please click here.