Are you keeping your finances healthy by doing the right thing at the right time? Taking the best action at the optimum time can be crucial to your financial future.
Accumulators (aged 25–45)
Start a monthly investment plan
- ‘Pay yourself first’ rather than create unrealistic budgets.
- Salary sacrifice into super while other financial obligations are low and stop when current needs are more important.
- Use any pay rises to fund your regular savings.
- Be clear about what you’re saving for and the best structure and investment options for that.
- Reduce unnecessary spending.
- Pay off the credit card, it’s probably costing you more than 15% pa interest.
- Consider consolidating credit card debt into a personal loan, and potentially paying less interest. If you do this, resist the temptation to accumulate more debt into your credit card.
Check out the government co-contribution
- If eligible you could get up to $1,000 added to your super for free every year.
Consider using a mortgage offset account
- This could reduce your loan interest while giving you access to the cash if you need it.
- Make sure you have sufficient death, disability and income protection insurance.
Next Blog Post: Part 2 – Builders/Pre-retirees (aged 45–65)
Source: Colonial First State.
For more information Contact Us
Richard Brown CPA CFP
Clinton Smith CFP
Financial Planning Ascot Vale | Financial Planning Melbourne
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