Financial Planning Tips for Young People and Couples

July 31, 2015

Many of us course through life without a solid plan. Especially when it comes to our finances, many of us use the "we'll work that out as we go along" approach. The danger with this mentality is that you might reach your retirement age with very poor financial standing.

Making investment choices outside the framework of your larger financial plan is inviting trouble. The good news is you can always set things right while you still have the time. So, make use of your productive financial years to build your nest egg. Here's how:

Create a Budget. Armed with affordable credit cards, it's easy to lose control over one's spending today and find oneself stuck knee-deep in debt. Avoid this financial pitfall by tracking your expenses carefully using realistic figures. You can begin by listing down all your monthly expenses and then analysing which among the items listed you can forgo or find an affordable alternative. You can also use an online budget planner to help you allocate your money efficiently. By creating a budget, you will also be able to find certain areas where you can save expenses or get more money, such as claiming tax back in Australia.

Pay Off Your Debt as Fast as You Can. This can be tough since you still have to establish a savings reserve in order to absorb unexpected expenses. However, if financial freedom is what you are after, you have to pay off those college loans or any other debt as fast as you can without borrowing money. A little sacrifice for the fun stuffcan give you the financially flexibility later in life once your debt is completely paid off and your income soar. Meanwhile, you can check out these resources that will surely teach you a thing or two about proper financial management, whether you're working or you have a business:

  • Smartline - when getting a mortgage is inevitable, you can trust this firm to help you find the best deal.
  • GiniWealth - offers independent wealth management services for anyone who requires an Umbrella Company, Self-Employment Advice.
  • - a mortgage broker that provides expert, innovative and independent mortgage advice.
  • DCS Delaware Franchise Tax - is one of the most important payments that every business in the state should pay, which can be done through a trusted company.

Save for Your Retirement and Invest in Insurance .Unless we die young, we will have to face the inevitability of old age. Thirty to forty years from now, we will have to deal with retirement. Are you prepared for it? Saving for retirement may probably not your current priority but, if you are not going to invest in it right now, then when? Take advantage of insurance and pension plans. The younger you start investing in them, the cheaper the premium will be. Insurance in particular make a good investment for individuals who don't have enough assets to cover their final expenses, who have dependents that won't have enough income to live on after their demise, and who have taxable estate and want a life insurance policy to relieve their heirs from paying the estate tax.

Build an Emergency Fund.A hundred pounds saved a month is equal to over a thousand pounds in a year, so save as much as you can. Even before you're done paying off your debt, it is a good idea to start saving a small amount for emergency situation. Ideally, you should be able to save money that can help you survive for six months or a year without work. That may seem like a lot and quite impossible to achieve but tightening the belt now and socking away money for future us can save you from the future financial stress if investing in a house and a having a baby are on the horizon.

A well-crafted plan is important for financial success. Let the above tips guide you in making your own. Get in touch with us here at Nelmo if you need help in managing your personal and business finances. You can also visit Harris Fraser Financial Planner Sydney for wealth management solutions.