You have finished University, working on building your career, keeping fit going to the gym, keeping up your social life going out meeting friends in pubs and restaurants and trying to save for travel.
“Budget, Super, Insurance, mortgage, estate planning, haven’t looked at it, I’m too busy can you fix it?”
This is a common answer I get from most young people both single and married, the fast pace that we live today means that most of these financial issues just don’t get addressed.
Getting a budget in place is the first thing to do, you will be amazed how much you are spending. Take the most common one, coffee! We love our coffee so two a day at $3 each can mean you are spending anywhere up to $144.00 a month, maybe more.
Getting super sorted
Many young people have multiple super funds, the thought of consolidating them is too hard, yet it is important to do this, to save on fees and make it easier to keep track of your funds. Also many people don’t realise what investment strategy they have, many have default investment options such as balanced or I have seen a lot in cash options. Given super is there for the long term investment option choice is imperative.
Insurance – it could happen to you
Life insurance, income protection and trauma insurance are also ignored, but having adequate protection is just as important for young people as it is for older individuals, the “it won’t happen to me” or “it’s too expensive” are common responses. But more young people are suffering life changing conditions such as brain tumours, melanoma and even strokes. Insurance inside Super is a great solution so the cost does not affect your cash flow.
Reviewing your mortgage
There are always great rates out there. I always recommend that you approach your bank first to see if they will give you a better rate. It is much easier to change your mortgage these days.
Having a Will
“I don’t have much, so why do I need a Will?” There are many reasons why you should get your estate planning in order – what happens to your super or the proceeds of your life insurance, bank accounts? Dying without a will poses all sort of issues for your family. A Power of Attorney (POA) is also necessary in case you have an accident that renders you incapable of dealing with you own financial issues, but also if you go away overseas then someone can act for you.
A financial adviser can “fix this” and it does not have to be expensive.