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.
This is not just a financial tip, it applies to many things: jobs, relationships, saving and investing. If you can’t commit to something, you’ll never get anywhere. Want to buy a house? Stop living paycheck to paycheck. Bust a gut and try earning more, while cutting back and spending less. Want your cake and eat it too? Go for it, just accept the fact that you won’t go anywhere.
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
Want to make $1 million this year with only $20 down? Buy a lottery ticket. The financial tip here is that there a no quick-fire shortcuts to wealth. Making money doesn’t come easy, but it can be done if you’re patient. Stop buying hot-tip stocks and speculating, it’s no better than the casino. Get some blue chip shares or buy property and build your capital slowly.
Acquire quality assets
If you want to be financially independent, you’ll need to build passive income streams for the future. Buy quality assets that will increase in value over time and hold onto them. Focus on growth when you’re young, then move your attention to income when you’re retired.
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, it 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, banker 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!