Financial planning for under 40's
Life Is Easier With Money
Money won’t necessarily make you happy but it does give a lot more choices.
Most people would agree that you could always do with more money but in reality most young people have very few financial responsibilities and a surprising amount of disposable income.
As we go through life most peoples income increases as they get older but unfortunately so do expenses.
Getting married, having kids, buying a home, paying off hecs debt, family holidays, moving for your job, insuring it all, even that new car that seemed like such a good idea a few years ago can become like a ball and chain when the servicing costs begin to mount up. All these costs begin to mount up and eat into that disposable income you used to enjoy for yourself.
But what if you could have more spare money as you go through life not less?
That’s the benefit you can enjoy by getting information and advice on your finances now. By planning from an early age you can set yourself up for a much better financial future, a future where you can make your decisions based on what you want and not be constrained by the financial burdens that sneak up on people as they get older.
And just to be clear, we are not talking about retirement, because realistically that’s many years away and likely to be pretty low on your list of priorities. We actually focus on things that are of more interest to younger investors such as.
Planning now so that whatever is in your future can be accommodated without having to alter the direction of your life simply because ‘you don’t have the money’.
It might not be about buying a home or starting a family but having the financial flexibility to make a career change later in life or being able to have an extended overseas trip without your finances falling apart while you’re away.
It’s All About Planning Now!
You might be wondering how this can be achieved.
Does it mean I have to give up going out with friends? Keeping my bomb of a car instead of upgrading, moving back in with Mum and Dad or packing my lunches for work?
Not at all. We work with you to find solutions that support your lifestyle not curtail your enjoyment.
We’ll show you how to buy your own home or an investment property (including information on the government subsidies and benefits available to help you get into real estate).
We’ll also show you better ways to invest your super, money that you have no choice but to save (so you might as well invest it wisely).
In most cases, the money you put aside to invest won’t even be missed after the first few months And a small amount of money can make a big difference.
A little can go a long way using the principles of compounding, so that by investing your savings and then re-investing the profits from those investments rather than spending them you can virtually explode your returns.
Just take a look at this chart:
So while you won’t see much of a difference in the first few years by the time your ready to take on more financial responsibilities your net worth will have increased along with your income.
To learn more about our special financial planning services for young investors please come to one of our Young Investors information evenings run free once a month.
Life Is Easier With Money
Money won’t necessarily make you happy but it does give a lot more choices.
Most people would agree that you could always do with more money but in reality most young people have very few financial responsibilities and a surprising amount of disposable income.
As we go through life most peoples income increases as they get older but unfortunately so do expenses.
Getting married, having kids, buying a home, paying off hecs debt, family holidays, moving for your job, insuring it all, even that new car that seemed like such a good idea a few years ago can become like a ball and chain when the servicing costs begin to mount up. All these costs begin to mount up and eat into that disposable income you used to enjoy for yourself.
But what if you could have more spare money as you go through life not less?
That’s the benefit you can enjoy by getting information and advice on your finances now. By planning from an early age you can set yourself up for a much better financial future, a future where you can make your decisions based on what you want and not be constrained by the financial burdens that sneak up on people as they get older.
And just to be clear, we are not talking about retirement, because realistically that’s many years away and likely to be pretty low on your list of priorities. We actually focus on things that are of more interest to younger investors such as.
- Buying a Home
Rising home prices will make it harder and harder for both young singles and couples to get on the property ladder. Whether you’re in the market for a home or investment property it is more difficult to get started in real estate than ever before and will only get worse in the coming years.
- Family
There may come a time in your life where you want to get married and have children. Plan now so that it will be a time of joy not a burden because of worry over money. It’s a fact that one of the most common causes of marital discord and eventual divorce is financial problems. So sort it out now so that this is one thing you won’t have to worry about. - Better Lifestyle
Would you like to have a more flexible lifestyle? Buy a better car, take more holidays at better destinations or have more time and money for the things you enjoy?
Making a few small sacrifices now will set you up for years to come and have your friends wondering why you are so loaded while they still live pay cheque to pay cheque. - Start a Business
If you have a passion for business, enjoy a challenge or would just like to be your own boss you may want to start your own business one day. Business isn’t easy, it usually takes a many months (or years) of hard work before your profits match your old employee income. But what if you had another source of income from your investments? Wouldn’t that take a bit of the pressure off and give your business a better shot at success.
Planning now so that whatever is in your future can be accommodated without having to alter the direction of your life simply because ‘you don’t have the money’.
It might not be about buying a home or starting a family but having the financial flexibility to make a career change later in life or being able to have an extended overseas trip without your finances falling apart while you’re away.
It’s All About Planning Now!
You might be wondering how this can be achieved.
Does it mean I have to give up going out with friends? Keeping my bomb of a car instead of upgrading, moving back in with Mum and Dad or packing my lunches for work?
Not at all. We work with you to find solutions that support your lifestyle not curtail your enjoyment.
We’ll show you how to buy your own home or an investment property (including information on the government subsidies and benefits available to help you get into real estate).
We’ll also show you better ways to invest your super, money that you have no choice but to save (so you might as well invest it wisely).
In most cases, the money you put aside to invest won’t even be missed after the first few months And a small amount of money can make a big difference.
What is the most powerful tool that anyone can use to build their wealth?
Just take a look at this chart:
| Anna wouldn’t call herself overly organized but after a few sticky financial situations she decided to start a saving. The green line represents Anna making contributions of $200 per month at 5%pa, (compounded monthly) and stopping at the end of 15 years (the dotted line). Even after she has stopped making contributions Anna’s account continues to grow. |
| Brett (shown in red) didn’t start saving until later. He actually started saving 15 years later than Anna about the same time she stopped making contributions. Even though Brett saves $250 per month and receives the same return (5% pa compounded monthly) it takes 45 years for his account to catch up to Anna’s (even though she has stopped contributing to her account long ago. |
| While it takes both Anna and Brett about 60 years to finally reach an account balance of $500,000 the difference was in their use of the power of compounding. Anna only had to contribute $36,000 of her own money to reach that result. After which she could just leave it alone and let it grow. Whereas Brett contributed a total of $135,000 of his own cash just to catch up to Anna. |
So while you won’t see much of a difference in the first few years by the time your ready to take on more financial responsibilities your net worth will have increased along with your income.
To learn more about our special financial planning services for young investors please come to one of our Young Investors information evenings run free once a month.
To book your appointment, just complete the below form
