This is the age to start actively building your credit history. Your credit history helps to determine your credit score, which is used to assess your eligibility when applying for things such as car loans, mortgages, credit cards and even rental properties. Beware of accumulating too much debt during this time, focus should be made on paying down any debts you may have such as student loans or credit cards.
Even though it may seem a long time off, your 20’s is the perfect time to start planning for retirement. Superannuation is one of the most tax efficient ways to invest and will ensure a healthy nest egg at retirement.
As you reach your 30’s you will begin to have more personal responsibilities such as marriage, children and a career. This is the time to consider personal insurance. You may already have some cover with your superannuation fund; it is important to understand what this cover includes and determine if it is sufficient to meet the needs of you and your family in the event of disability or death.
Now is also the time to consider your savings goals – what are your financial plans for the future? Whether your goals are buying a home, giving your children the best education or going on a dream holiday, implementing a financial plan will help you achieve those goals.
By the time you reach your forties you may be well established in your career and family life, however this can be the most stressful time money-wise, as expenses can skyrocket with the pressures of mortgage payments, raising children and everyday living. Now is the time to prioritise and set a budget to manage your cash flow. If possible, you should consider making additional contributions to your superannuation. Having a financial plan in place will help reduce any stress you may be feeling about your financial future.
Once you hit your 50’s, it is time to focus on getting debt-free. If possible, now is the time to make extra repayments on your home loan. Set a goal to be mortgage free before retirement. Once you are debt-free you will be able to concentrate on smart investing – adding any surplus cash to your superannuation will help ensure a healthy retirement fund when the time comes. It is also important at this age to review your superannuation to ensure it is working for you in the best way possible.
As your retirement draws nearer, now is the time for careful planning in regards to maximising your retirement income. A financial planner will be able to help you make the most of income in retirement.
Ensuring that your Will, Power of Attorney and Estate Planning is all in order at this stage will eliminate any stress for you and your family moving forward.
Regardless of your age or stage of life, the key to achieving your financial goals is to have a plan. At Greentree Financial our experienced financial planners will work with you to help you build a more robust and brighter financial future.Let's Talk