• Work out what you want to achieve in life – what are your goals and objectives, write them down and for motivation put them where you will see them every day.
• Review and reduce your debts – Start by paying the debt with the highest interest rate first, prioritise non-deductible or ‘bad’ debt.
• Pay yourself first – I’m not referring to spending money first I’m talking about putting funds away for the long term before you spend money. Start an automated investment system.
• Spend less than you earn – This sound obvious and in reality it is. Unfortunately it’s often easier said than done and some of us are in denial because they think they are living within their means but just aren’t doing it. Have an objective look at your bank accounts, credit cards and other loans to ensure everything is heading in the right direction. If you have large debts consider consolidation.
• Use the power of compound interest – the earlier you start the more your investments can work for you.
• Time in, not timing markets – the ‘sharemarket’ will always be volatile, by being invested for the long term you reduce investment risk.
• Reduce your taxes and take advantage of government initiatives – salary sacrifice into superannuation is essentially an automated investment system for your retirement that reduces your tax. If applicable take advantage of the Eligible Spouse contribution and the Government Co-contribution.
• Seek advice – a financial planner can help you by giving advice on your specific circumstances.
I can’t stress it enough but the most important thing is to start something now. Email me firstname.lastname@example.org if you have any questions.
The information on these pages is provided in good faith and is to the best of our knowledge accurate. We provide it without any warranty as to its correctness of statement or opinion or its suitability for any particular purpose. Any advice on this blog/website is of necessity general in nature and not specifically tailored to suit differing individual circumstances. For that, you must seek and we advise that you do seek financial advice from a licensed professional. Sean Thomas can accept no liability for any decisions that you may make based on the information on this blog/website.