Financial advice I’d give my younger self
Being a financial planner is an enjoyable job, especially when your client is a really nice person and eager to make changes in their life, which to be fair is most of the time.
However sometimes there is baggage, and often when you dig deeper with clients, we touch on regrets and misfires in their life. These can be painful memories that can weigh you down and prevent you moving forward with your life.
Some of those regrets might include;
“I wish I’d had the courage to live a life true to myself, not the life others expected of me.”
“I wish I hadn’t worked so hard.”
“I wish I’d had the courage to express my feelings.”
“I wish I had stayed in touch with my friends.”
“I wish that I had let myself be happier.”
So when asked by a colleague what financial advice and goals I would give my younger self, I thought about some of the misfires that I have made in my life and then focused on the successful things I have done!
Here are some of the things that have worked for me over the years;
Investing. I have invested in a range of assets for long term gain, including property and shares. At the time there was an element of risk, but they are certainly providing a strong return in the later years.
Paying down personal debt. This is a big one! I’ve focused on reducing my debt but at times have taken on investment debt where circumstances warrant.
Protected myself and my family with sensible asset protection strategies. I speak a lot about insurances and I still believe this is a vital element of my financial plan - to be prepared for the unexpected.
Estate planning strategy; a sensible, long-term plan is important to ensure your assets will be allocated the best way in the event you are not around. This is a tricky one to navigate because it requires a recognition that we won’t be around forever - but a very important topic! One that I’m more than happy to chat with my clients about, to address their fears and concerns.
Other good ideas I wish I had thought about earlier are;
Improving my employment and therefore my income. Whilst I love my job, I believe gaining a range of experience and skills early on in life will help you go further in raising your income.
Focus on eliminating or minimising unnecessary costs. This one is easier to say in hindsight, but there are many things I now see as unnecessary and would have been better spent elsewhere. A good assessment of your budget and spending will help you identify these areas early on.
Negative gearing can be a great tool for property investments.
Tax planning. Get it right and you’ll reap long-term rewards!
Make deductible super contributions.
Invest in a Capital Gains Tax (CGT) free family home. (I’ll dive into this in a future blog!)
Invest in a CGT concessional negatively geared rental property, and never sell.
Use my cash to pay off the expensive non-deductible home loan.
Tax efficient cars and travel.
Take the twenty-year view with your investments. Always be looking ahead
Pay as much super as you can. Superannuation is the largest contributor towards your life after work - make sure you prioritise this when you’re young.
So, as you can see there are many financial strategies you can use! Not all of these will apply to you, but maybe you are interested in some.
Please note this is all general advice I would give myself. Personal financial advice should be conducted after a thorough assessment of your lifestyle, goals and current finances, by a trusted adviser.
If you’re interested in any of this and want to find out more, you can contact our team today.
