You might not realise it, but how we manage our finances when we’re young can significantly impact the quality of our future. In the past, you would have been forgiven for believing that financial planning was only reserved for Australians at later life stages. But here at Financial Spectrum, we believe time is your greatest asset so you’re never too young to get financial advice.
Whether you’re planning to get married, buy a home, retire early or need help putting together a budget, getting financial advice in your 20s can accelerate your ability to create long-term wealth.
In this blog, we’ll explore what a financial advisor does, the benefits of financial advice and when financial advice for 20-year-olds may be necessary.
What is a financial advisor?
A financial advisor is a qualified professional who helps everyday Australians make better, more informed financial decisions. Getting financial advice can be done at all life stages, whether you’re in your early 20s or late 50s. For younger clients, a good financial advisor will provide advice and services in the following areas:
- Financial goal setting
- Financial modelling – like whether it’s better for you to invest in property or shares, or whether you should rentvest or buy a home
- Budgeting and cash flow management
- Share investing
- Property investment
- FIRE (Financial Independence Retire Early) strategies
- Tax minimisation
Six signs it’s time to visit a financial advisor
Whether you’ve got big life plans or need guidance in finding the financial goals you want to achieve, a financial advisor can help. For many Australians, knowing when to seek professional help can feel unclear. To keep things simple, we’ve outlined some of the common reasons you might consider getting financial advice:
- You are unsure of financial goals — Whether you’re looking to make the best financial decisions in your 20s, 30s or even 50s, you need something to work toward. A financial advisor can work with you to establish clear financial short and long-term goals to ensure you continue to make smart financial decisions.
- You’re interested in FIRE strategies — FIRE stands for financial independence, retire early – a retirement strategy gaining momentum across Australia. Those within the FIRE community commit to making frugal financial choices to save money as quickly as possible while setting big investment goals focused on low-cost index funds, property and superannuation. Making this commitment when you’re young puts you in a position to retire early.
- You need help managing your cash flow — Budget and cash flow management are the foundation of any financial strategy. The more control you have over your money, the faster you’ll be able to save, invest and reach your goals. But before you despair at the thought of a budget, Financial Spectrum has a unique approach to budgeting without a spreadsheet in sight!
- You want to create a solid investment portfolio — If you need some help getting your investment plans off the ground or perhaps don’t know where to begin, a financial advisor can help you establish and manage multiple investments, whether that’s property, shares or other assets.
- You are time-poor — We all want to do right by our finances, but sometimes, we simply don’t have the time to sit down and create a plan. Getting financial advice from a financial advisor not only takes money management off your to-do list, but you can also rest easy knowing that your financial future is in the hands of professionals.
- Your financial knowledge is limited — Managing your finances in your 20s can be complicated, especially if it feels like you’re starting from scratch. Meeting with a financial advisor can help you get clarity on areas that may need developing, like saving or investing.
Bottom line: do I need a financial planner? Our view is you’re never too young to see a financial planner. You work hard for your money, so you should make the most of it. If you are interested in the financial advice for young adults an advisor can provide, look no further than Financial Spectrum.
Financial Spectrum — home to expert financial advice for young adults in Australia
No matter if you’re after financial tips for your 20s or a solid plan for lifelong wealth, Financial Spectrum can help. We pride ourselves on being a privately owned financial planning organisation, so you can trust that any professional advice passed on by our team has no ties to banks or other financial institutions.
We cater to a wide range of clients and can provide financial advice for 30-year-olds or help older Australians prepare for retirement. Instead of offering one-and-done packages, we provide tailored advice for every one of our clients to help them reach their goals. Find out how one of our qualified advisors can help you take charge of your financial future by booking an appointment with us today.
Rebecca is passionate about promoting the positive impact of quality financial advice on personal wellbeing. Read her full bio here.
