Making the decision to put money aside now for the future can be a tough one. Where do I start? Where does the money for savings come from? How much should I allocate to my savings bucket are all important questions.
Here are three simple tips young families and young professionals can use now to start laying the right foundation for their future:
Review your super fund
Superannuation can be an easily forgotten asset, as generally you are required to reach retirement age to access it (there are some exceptions to this rule).
However, superannuation is your money and for most Australians, becomes a vital asset in funding their retirement.
As such, decisions made at an early age to manage your superannuation effectively, choose and contribute to the best fund for you, and ensure you are educated about your investment options, can potentially have a dramatic effect on your future super balance through the effects of compounding returns over time.
Have a budget
‘A goal without a plan is just a wish’. I would be confident to say that a general goal for most would be to accumulate wealth over their lifetime so that in retirement you can live your ideal life. Sitting down and committing yourself to a budget is a key step in setting the foundation of your financial plan.
Understanding your expenses and where your money goes is the start of taking your finances seriously which will have a growing positive impact to you over the long-term. Create a budget, take control!
Enjoy the journey of saving
Once you understand your budget, you can be clear on your ability to save, which then opens the door for exploring opportunities to maximise its potential.
Savings can be accumulated in cash or invested in a variety of assets all of which come with their own positives and negatives, risks and rewards. Putting investment options aside, saving is like a muscle, the more you do it the stronger the habit becomes.
Setting yourself savings goals which you commit to early, will set a great platform for long-term wealth creation as your income earning capacity and financial knowledge grows over time.
These three tips are based on the behaviours that those who have built wealth over time generally explore. The earlier you implement them in your life, and the earlier you change your beliefs about money, the greater the impact will be your financial future ahead.
If you want your future to be above average, it’s time to see our Financial Planning specialists at Sydney Wealth Advisers. Please book a complimentary appointment or call our office to make an enquiry.