Jan 18, 2018  | Tags: Young people, financial planning

Our Insights

If you’re a young adult, you may think that you don’t need to worry about financial planning. Not at this point in the game. It’s not like you’re even earning enough to bother putting towards savings.

Or so you may think.

With mortgages growing faster than the average income, succeeding financially can feel like a hopeless task.

But getting started right now will help you stay ahead of the game. Your future self will thank you when your decisions now help you retire by the age of 40.

Here are a few tips that can help you make all your wealth dreams a reality sooner than you thought possible.

Stay Disciplined

Discipline is the driving principle behind any financial success. You won’t get fortune handed to you. Neither can you predict or plan your luck in the stock market or lottery. But with some hard work and sacrifice, you can guarantee a significant measure of financial security.

Many young people feel entitled to high-paying jobs and complain about not getting a raise. But they fail to realise that properly managing what they already have may be the key to unlocking extra funds.

Exercise discipline in your financial life by teaching yourself to say no to things that will only set you back. Try to make do with less so that you can afford more later on.

Cultivate Self-Control

The general attitude these days is to discount self-control, making it seem normal and relatable to have no control over spending habits. It’s a fact that you can easily have everything you want right now, thanks to credit. 

Never use a credit card for instant gratification! Credit use incurs interest charges that can saddle you with debt for years. Pay for only what you can afford, avoid unnecessary debt and learn to differentiate between your non-vital wants and your true necessities. Practicing some restraint and delaying gratification will be good for your financial portfolio.

Saving Starts Now

Every coin counts and no matter how little you earn, you can still set habits now that will help you save for the future.

Consider opening a high-interest savings account to deposit spare dollars into. Make your savings contribution a non-negotiable monthly expense. Divvy up the rest of your earnings among bills and other necessary expenses, and treat yourself with whatever is left over.

Educate Yourself

You don’t need to have an MBA in finance to be money-smart. Educate yourself with any and all resources available in your area: college course, online research, advice from a financial planner and public libraries.

You must be cautious of others’ advice. You’re responsible for your finances and don’t want to bear consequences of a poor decision based on someone else’s opinion. If you’re educated, you’ll know where you’re at and what you need and will be able to make smart choices.

Reduce Risk

At this stage in your life, you don’t have a whole lot to lose. But be careful to not lose what you do have. Adequate automobile insurance is one of the best ways to ensure you don’t start out your adult life with major debts hanging over your head, should you wind up responsible for an accident. Lower your chances for such risks and you’ll spare yourself some headache in the future.

As a young person, it’s true that you have plenty of time. There’s no rush. You’ve got time to make mistakes and try again. Time you won’t have once you’ve started a family, have bills and mortgage to pay off and health problems etc. 

Take advantage of what you have right now to build a secure financial future for yourself.

Want to get the best start on your future financial security? Start now by scheduling a consultation with the financial planners at Calder Wealth Management.

Expert Financial Advice 

For a no obligations discussion about your needs, reach out to our team here at Calder Wealth Management. Call on 08 8373 3333 today to schedule an an appointment.

- Ben Calder, Private Client Adviser