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We understand that as a young professional, you’re juggling a number of competing priorities, from your day-to-day professional responsibilities, to building your career, to maintaining your health, relationships and social life – just to name a few. There’s no doubting the importance of each of these priorities but as you dedicate time and headspace to each area of your life, it can be easy to put-off thinking about your financial future until a later stage.
However, with age on your side, you are in a powerful position. The decisions you make early on in life will have significant impacts on your future and while it’s never too late to get a handle on your finances, it does get harder, and harder the longer you leave it. Dedicating some time and thought to your financial future now, and making the right decisions from the get-go, will help you set yourself up for life and save you significant time, money and worry down the track.
We’ve put together five considerations to help get you started.
Be clear on what you want
First and foremost, determine and prioritise what you want to achieve, for the short-term and the long-term. Regardless of personal wealth and income, resources are limited and the truth is none of us can have everything we want. What is most important to you? Perhaps you’d like to purchase your first home, travel or start a family? Maybe you’d like to start your own business? When do you want to achieve this by and how much do you really need to get there? Writing down what you’d like to achieve, by when and understanding the costs involved will help to build a sense of clarity, provide you with direction and allow you to structure your finances in a way which aims to systematically achieve your goals over a defined time period.
Build a strong foundation
Understand exactly what you spend your money on and why you spend your money the way you do. Be honest and thorough. Knowing exactly where your money is going, and how much, will make it easier for you to set up the right budget and banking structures in order to control your cashflow, pay down debt and ultimately build a strong financial foundation for your future and your goals.
Partner with someone you trust
Partnering with the right people is critical and some great advice at the start can make a world of difference from a financial, legal and time perspective. Depending on your profession and employment arrangement, you may need to seek professional advice in relation to appropriate structuring considerations to ensure you maximise tax efficiency, leverage relevant asset protection benefits and correctly position yourself for any future business growth plans. Once you are comfortable with your structures, you can focus on putting your hard earned income to work.
Protect your future
It may not be something many of us like to think about, but the unexpected does happen. Considering the downside and having an insurance plan and emergency fund in place can help make a difficult situation a little bit easier, at least financially. Also remember the importance of your health. The single largest asset for most individuals isn’t their house or superannuation, it is their unearned future income. The value in protecting this asset is often overlooked.
Review your super
Whether you’re just starting out in your chosen profession, or you are at the prime of your career, superannuation is very important. Superannuation is your money, and your future. Whilst retirement may seem far away, the sooner you start planning, the better off you will be when that time comes. Depending on your circumstances and what you’re aiming to achieve, there are a number of strategies you may want to consider in order to maximise your super, such as reviewing your investment options and ensuring they are appropriate for your current circumstances or making regular contributions if eligible.
The decisions you make today will shape where you want to be in the future. Before you start thinking about your goals and getting your finances on track in order to achieve them, you must be willing to challenge and change what you think you know about money. If you would like some assistance in setting up the right cash flow structures for your personal circumstances, or would like to explore strategies and solutions that can help you get on track to achieving your life goals, please don’t hesitate to get in touch with us on (07) 3391 5055 or firstname.lastname@example.org for a complimentary, obligation-free appointment.
Disclaimer: This article contains general information only and is not intended to constitute financial product advice. Any information provided or conclusions made, whether express or implied, do not take into account the investment objectives, financial situation and particular needs of an investor. It should not be relied upon as a substitute for professional advice.