Planning: Finance and Your Life Stages

 In Accounting & Business Advisory, Financial Planning, Insurance, Investment, Mortgage & Loans, News, Uncategorized

It’s well known that having a long-term plan will significantly increase your chances to reach your goals. Despite this, many financial advisors will tell you that it is a rarity for people to have considered their financial position at all, no matter what stage of their life they are in.

The reality is that decisions you make now will affect your financial position in the future. Rather than seeing this as daunting and overwhelming which hinders you from truly achieving the financial freedom you desire, approaching this with thoughtfulness and a success strategy can seek to overcome the barriers – both imagined and otherwise.

We as financial advisors understand and appreciate that everyone is different. There are a myriad of factors affecting every person’s financial situation through every stage of their life.

We have compiled a general list of common goals and objectives aimed at different life stages. Whilst it is by no means exhaustive, it does create some diner table talking points.


Stage 1

  • Financial Literacy

Start small. Learn the concepts and key terms when speaking about money and finance. Understanding the jargon is the first step to being financially successful.

  • Save and Spend

…wisely! Start exhibiting good financial habits and understand the importance of saving your money and not spending on impulse.

  • Develop goals

What do you want to achieve financially in your lifetime? Buy a house? Have an investment portfolio? Financial independence? Write them all down.


Stage 2

  • Budget

Develop a budget – and stick to it. Having a comprehensive understanding of your financial situation and control over your spending. This will make it immensely easier to reach those goals you wrote down in Stage 1.

  • Buy that House

And understand the importance of financial control when dealing with debt. Take out a mortgage and strategise how you will pay it back.

  • Invest

Those savings or extra cash you have accumulated (no matter how small) – put it to work. Rather than leaving any spare money lying around, invest it to grow your income and benefit your future self.


Stage 3

  • Debt Free

That mortgage you have? Work hard to pay it off. The same goes for any other outstanding debts you have. The sooner you pay it off, the less interest you will ultimately end up paying.

  • Ensure Insurance

Whilst in the earlier stages above there may not have been a need for high levels of insurance, such as income protection. However, now is the time to reevaluate and ensure that you have ample protection in place for whatever situation that may occur.

  • Save for Retirement

The golden years are ahead. Review your financial position to ensure you can live comfortably throughout retirement.


Stage 4

  • Strategise Super

Now is the best time to revise your super to ensure your assets are structured accordingly for maximum benefit. After all, we want your retirement to be comfortable.

  • Diversify Investments

What matters most to you now? Your super? Your children? Grandchildren? Consider shifting your investments to benefit what you care about most in life.


Stage 5

  • Estate planning

Strategise how your assets will be passed on in order to minimise tax obligations and third party expenses.

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