This is a guide to the financial matters you should be thinking about at the different stages of your life:
20–30 Having fun while you are young is a good thing, but you are never too young to think about saving.
- set a budget you can live with
- start a regular savings plan for a deposit
- put a few dollars away each week for superannuation
- take care of your health and take out income protection insurance
- take financial risks on aggressive, growth-orientated products
31–40 By this time many people are in serious relationships and are looking to establish a family and home.
- look at maximising your career and earning potential
- seriously think about mortgage reduction
- start planning for the children’s education
- make sure your will and insurances are in order
- establish a family financial plan
41–50 With the mortgage mostly paid off and the children starting to leave home, this is the time of financial freedom.
- increase your super contributions
- diversify your investment portfolio
- reduce and pay off the mortgage
- look at your health and increase life, disability and income insurances
- use the equity in your home to fund other investments
51–60 Time to start thinking about retirement and easing up on the workload.
- increase contributions to your superannuation
- consider switching investments to more secure options
- ensure wills and other legal documents are up to date
- talk to a financial planner
61+ Time to enjoy your golden years and a well-funded lifestyle!
- explore your pension entitlements
- arrange tax-effective income streams
- continue increasing super contributions until retirement
- maintain health insurance but reduce the rest
- take care of your health