Achieving financial independence doesn’t have to be complex. In my experience five commonsense steps can help you enjoy the life you want to lead.
Take control of your money
I know life is expensive. And you probably you think you’d be okay if you earned a few thousand extra dollars. But we are humans. And the truth is we always seem to be able to spend 10% more than we earn, no matter how much we earn!
That’s why it’s so important to budget, regularly set aside money for savings and avoid high interest debt that funds purchases of no lasting value. Easier said than done I hear you say? Maybe, but with professional financial support it can be done. Call my office today to get started.
Avoid silly risks
When it comes to investing, risk equals return. Yet humans seem to instinctively want an easy way to make money with little effort, which explains those get-rich-quick schemes that flood our email inboxes.
Invest regularly, but manage risk by diversifying across a range of quality assets. If you’re not sure where or how to invest, contact me for a tailored investment plan that sets a clear path for you to follow.
Own a home debt-free at some stage
Home ownership is a goal worth aiming for. Once you’re achieved it, the next target is to pay off the mortgage ahead of schedule.
I know that dipping into home equity can be a low cost way to fund a myriad of goals. But think about how you will manage if you’re still paying off a mortgage in retirement. Owning your place debt-free is financially liberating, and something worth aiming for – preferably before you retire. I can suggest a range of strategies to help you do just that.
Learn to love your super
Don’t wait until you’re in your 40s, 50s (or even 60s) to get serious about your retirement savings. Choose a super fund that works for you, take it with you from job to job, and add to your retirement nest egg wherever you can.
As part of a long term plan superannuation makes tremendous sense. It’s tax efficient, you can’t readily get your hands on the cash while you’re in the workforce, which is a huge plus, and I can recommend options to invest your super in high quality assets to help fund your future lifestyle.
Protect what you have
We all understand the need to insure assets like a home, its contents and other valuables. This type of cover is essential. But the other asset you need to protect is you. The start of the year is always an ideal time for a catch-up to discuss whether you have sufficient life cover and income protection insurance in place to protect your family, yourself and your financial wellbeing.
One final point. I believe the value of money is to give you options, and you should plan to have fun along the journey. I would also hope that one day, when you do stop work, you recognise that all your hard work was to give you freedom later in life. But achieving that sort of freedom calls for planning. Contact my office today to ensure your financial plan is in great shape for a successful 2018 – and beyond.