Sometimes, we can get so caught up with ‘getting by’ that planning for the future gets put to one side. Many individuals assume financial planning is for those with large investment portfolios, but in contrast, it is something everyone can benefit from. There are many aspects to planning for the future: managing our debt, building a retirement fund, saving for our first home, and ensuring we are never short of an income. Today, we want to discuss a few key areas that everyone, no matter their wealth, can take advantage of and start building a more secure future.
Financial Planning isn’t Only for the Wealthy
Firstly, it’s important to understand that financial planning isn’t just for those with wealth. In fact, it is most important to think about when we are just starting out in our careers. With a clear target and the right mindset, all of us can achieve our financial aspirations. Steps as simple as tracking daily outgoings make immense ripples in our lives, taking us one step closer to the life we want.
Why Debt Isn’t Always a Negative Thing
There are a lot of misconceptions when it comes to accumulating debt. However, there is a difference between good and bad debt. Leveraging bank loans and credit cards to build our credit rating is a huge step towards achieving the financial security everybody wants. Managing debt properly can help us grow wealth while improving our long-term prospects.
How Income Protection Insurance Can Keep You on Track
While planning for the future, saving, and managing our credit portfolio is essential, safeguarding our income should be considered just as important. Income protection insurance in Australia is considered a fundamental aspect of financial planning by millions, and can provide us with up to 70% of our monthly income if we are ever unable to work due to an accident or illness. With a good income protection insurance policy, we can ascertain tremendous peace of mind about what the future might hold.
Keeping on Top of Financial Planning Over the Years
Unfortunately, financial planning isn’t a one-time thing. Over the years, our situation will change. Most of us will build our careers, purchase a home, and create a family, so it is crucial to check in with our goals and ensure everything is on track. For instance, if you took out an income protection insurance policy when you were earning $30,000, but now you’re taking home $60,000, your old policy isn’t going to keep up with your current obligations. Taking the time to review and amend all aspects of your financial plan is key to your success.
Setting Your Goals
When planning for the future, take your time and go over everything to ensure it is clear and achievable. It is sometimes worth using a professional advisor from time to time to get an expert opinion. Set your realistic timelines, define what you are working towards, and you’ll be able to make informed decisions that get you closer to the financial freedom you’ve always dreamed of.
