So you have your degree, trade or business and a great job paying a good salary
That’s a good start, but that’s all it is. A start! From here it’s the smart decisions you make that will determine how successful and secure your future will develop.
At FORSYTHS we have identified a range of actions which will help you make the most of your advantages.
- SAVE!! Save as though there is a recession no matter what the economy is doing. Having money gives security and peace of mind. Throwing your money away simply leads to rushed decisions, insecurity and at some stage, regret. Having reserves behind you means you’ll never be forced into a poor decision due to lack of financial options.
- Say goodbye to wasteful splurges! Keep track of your expenditures and only buy the items that make you happy in the long term and not short term. Think about the compounding effect of every purchase. A fast food meal a day or a trip to Europe for my holidays. Same cost, yet one is a daily reward that will only make you fat and ultimately unhappy. The other is a reward that will give you a lifetime of good memories.
- If you have to have a credit card, check that credit card annually. If your credit rating allows it, switch to a better provider to take advantage of their introductory offers such as 0% interest on balance transfers etc. But be wary as there are traps such as higher interest on new spending on some of these cards.
- Don’t scrimp on career related investments! This is an investment into your future earning power. Consider a career coach or development course as a means to achieving higher income.
- Keep an annual budget. A study has found that monthly budgets tend to be underestimated by 40%, whilst annual expenses are overestimated by 3%. Knowing your budget can help you understand where you can make cuts to your expenses and how much you can save.
- Don’t be pushed by financial advisors to have a house which is 1/3 of your annual income. For many people with other loans and hefty expenses, 1/3 of your income is too much.
- Investing a little bit at a time in the market is the safest way to reduce the risks involved in investments. This is even when the market is in a downturn. Just ensure you have a diversified portfolio and then you have covered all bases. FORSYTHS can explain terms such as dollar cost averaging , gearing compounding etc. If you understand these concepts then it is easier to make good investment decisions.
- Putting a little extra aside into your superannuation for retirement no matter what age you are can only benefit you in the future. A person paying extra into their super fund from age twenty will have nearly DOUBLE the amount upon retirement as a person who starts with the same amount but at age thirty. START NOW.
- Not all debt is bad. By avoiding debt altogether you can miss out on opportunities, whilst taking on too much can lead to financial ruin… Get a good balance. Talk to FORSYTHS Before you take on significant debt and take control.
- Treat time like a valuable asset. Try automating any daily chores such as setting up online bill payments so you can spend more time doing things less ordinary.
- Take your lunch to work. Buying that lunch at work equates to over $200,000.00 in your lifetime. Would you rather take your lunch to work and have that amount added to your retirement?