Do I need guidance on my journey towards financial success?

From managing your cashflows, knowing when to make your first home purchase and saving up for a comfortable retirement, young Australians have a lot to think about – but can you leapfrog your journey towards financial success with some guidance along the way?

Here’s a few areas where a well-thought-out plan will help you get ahead of the curve:

Managing cashflows and investing wisely

Managing money is no easy task. How do you find the right balance between funding a comfortable lifestyle and saving for your future? Picking up a second job and selling a few unnecessary things will top up your savings account in the short-term, but only a comprehensive savings strategy will ensure financial success in the long run.

Once you have a great savings plan in place, how do you optimise your return on these funds through a smart investment plan? The internet may have an abundance of information and advice, but a tailored solution will allow you to invest in line with your personal circumstances and a level of risk that you are comfortable with.

Purchasing your first home

Purchasing your first home is a big step in everyone’s life – and home ownership is getting expensive. This is especially evident when you look at the generational wealth gap between millennial’s and the baby boomers that benefited from Australia’s property boom.

A survey conducted in 2019 revealed that 94% of millennial’s considered home ownership to be important, and 66% planned to buy a home over the next 5 years [1]. Maybe you aspire to the dream of owning a home, but have questions around how and when to take the leap.

How will a mortgage impact my financial situation? Am I ready to be tied down to one place? Does a more affordable mortgage mean longer commutes to work? These are all questions you may have as a first-time home buyer, and getting some professional guidance will help set you on the right path.

Planning for your retirement

While your retirement may be many decades away, it is important to think about how you would like to spend your golden years. Desired lifestyles can vary significantly between individuals, and having a clear idea about your ideal retirement will allow you to work towards this goal.

Seeking help around how much you will need to fund a comfortable retirement – and more importantly, setting up a plan to get there – will mean that you are effectively investing in your future self. You can either opt towards building a strong asset base over the coming decades, or invest in your superannuation by making a salary sacrifice.

Professional advice will help you navigate these options better, and allow you to take advantage of powerful wealth-building tools such as compounding. Compounding follows a simple principle – the sooner you begin to save, the faster your money will grow. You can read our article on compounding here.

These are just a few ways in which sound advice can help you get ahead of the curve, but our individual needs can vary significantly based on our current situation and aspirations. For example, you may want to work remotely and follow your passion for travel and adventure, but may have questions around how to manage your cashflows. No matter the circumstance, starting a conversation with a planner will guarantee a healthy financial future and help you live a more fulfilling life.

[1] “66% of non-home owner millennials plan to buy property within 5 years: Gateway Bank”, Property Observer, October 2019. Can be accessed here.