Planning for your financial future
Have you factored these steps into your long-term goals?
Blogger: Paul Wilson, founder, We Find Houses Group
For some, the future (ie, retirement) seems like a long way away. For others, the future is just around the corner.
Whatever your age and stage, planning for your future is non-negotiable.
Below I’m going to outline how you can take charge of your future – in a way that’s easy, simple and achievable.
Organise your finances
I can hear a choir of groans already but, yes, you need to organise your finances.
Many people don’t understand what this really means… I'm not talking about nicely organised receipts for the tax man.
Getting on top of your finances means finding out what assets you have, e.g. house, savings and investments.
It also means having a clear picture of how much superannuation you have and when you can access it.
If you are closer to retirement age, it also means knowing when you can apply for the age pension and if you’ll be eligible.
Make a financial plan
The next step is to plan out your finances.
Planning gives you the best chance of achieving financial security and a lifestyle you can enjoy in the years to come.
It also allows you to clarify potential issues and benchmark your current position.
You can also plan for where your needs might change over time. Considerations could include having children, travel, a new car or renovating.
Define your goals and think about how to use your different income sources to fund different stages in your life.
It’s important to plan for the long-term, not just the next five years. Planning now can save you thousands later.
Grow your retirement income
Running out of money is a common fear for retirees, and even Gen Ys as they think about their future.
But there are ways to stretch your income in retirement and ways to plan to have more funds in retirement.
Get advice as early as you can – speak with your accountant about your superannuation and engage an adviser to help with investment strategies.
Diversify your assets into investments that grow over time, like shares or property.
Property is commonly regarded as a great way to build wealth for retirement.
An investment property (or multiple properties) could be the perfect thing to set you up for later in life.
And it’s something that you can work into your financial plan right now.
It’s never too early or too late to take charge of your future. By using the simple steps above you will have a solid start.
