As financial advisers, our clients turn to us for help with many aspects of their finances. But have you ever wondered what financial tips financial advisers tell their friends and family to do with their money? Here are our top 7 financial tips we share with those closest to us.
Commit yourself
This tip applies not just to finances, but to many areas of life, such as careers, relationships, saving, and investing. Committing to your financial goals is essential for making progress. If you’re aiming to buy a home, it’s important to take steps to stop living paycheck to paycheck. Consider reviewing your spending habits and explore ways to increase your income. With dedication and planning, you can work toward your financial dreams. Remember, it’s perfectly okay to want to enjoy life while also working toward your goals – finding a balance is key. Embrace the journey and make incremental changes that lead to lasting success.
Don’t conform
Typically in life, we’re led to getting an education, landing a job, buying a house, having kids and retiring by 65. While this is fine for some, it doesn’t work for everyone. How about starting your own business rather than buying a home? What about rentvesting and having five investment properties paying themselves off while you’re renting by the beach? There is more than one way to get ahead and succeed, so don’t feel the need to conform. Get financial advice to help you reach personal lifestyle aspirations.
Stop looking for shortcuts
Thinking you can make $1 million this year with just a $20 investment? That’s the allure of the lottery. The reality is that there are no quick shortcuts to building wealth. Achieving financial success requires patience and a well-thought-out strategy. Instead of chasing hot tips or speculative stocks, focus on sound investments. Consider options like exchange-traded funds (ETFs) or property, which can help you build your capital steadily over time. With a disciplined approach and a long-term perspective, you can work toward your financial goals without falling for quick fixes.
Acquire quality assets
To achieve financial independence, it’s essential to invest in quality assets for the future. Invest in assets that are likely to appreciate over time and hold onto them. In your younger years, prioritise growth-oriented assets with high return potential, such as property and shares. As you approach retirement, shift your focus to income-generating options, like dividend-paying stocks or bonds. This disciplined approach to acquiring and maintaining quality assets will help you build wealth and secure your financial future.
Take control of your super
For most Australians, super is their largest investment outside of their home. Yet many don’t pay attention to it until they’re ready to retire. Take time to understand your super to minimise fees and maximise returns. Check you’re not missing any super using the ATO’s super look up tool, consolidate your accounts, check your fees and ensure you’re getting an appropriate return for your life stage. While this may take a bit of research and signing a few forms, taking control of your super could make you tens or hundreds of thousands of dollars better off.
Beware of investment seminars
Please be wary of investment seminars. There can be some valuable information at these sessions. However more often than not, most of the time is spent selling to you, rather than giving you something of value. If you must go, don’t be lured to sign up on the spot. Instead, find someone you trust to share the ideas with so they can counter the false optimism that the sales process builds.
Get the right advice
Our final financial tip is to get experienced advisers on your side. A good lawyer, accountant, and financial planner can provide invaluable guidance throughout your life. Experienced advisors will know much more than you do about their particular fields, and their advice can add a lot of value to your long-term financial future. Do your research, ask around, and when you choose a good financial planner, don’t let them go!
Consistently ranked one of Sydney’s top financial planners (Adviser Ratings), Brenton helps his clients life a great life by making the most of their money. Read his full bio here.
