Why should I start thinking about my financial future?
Whether you're in your mid 20s or 50s, your personal financial matters should always be a top concern. After all, money is one thing you're going to need a lot of toward the end of your life when you reach retirement.
You might be asking yourself when and why you should start thinking about your financial future. The answer is: All the time. And wealth coaching is the way to ensure you're on track.
However, there are other issues that may pop up in your life that might require a bit more forward-thinking than others. Here are two of them:
To reduce your debt
It's quite easy to pop down to your bank and get a low-limit credit card. Although this might help you satisfy your need for a brand new TV or to pay off a couple of your bills, the interest that's tied to credit cards can be alarmingly high.
You might have a low-limit credit card, maybe a $2,000 loan, and perhaps a $1,000 overdraft, but once you add all of this together it's already in the thousands. When interest is lumped onto that, it's even more.
As soon as you even think about taking on any sort of debt, you should think about how it will impact your financial future. If you've already accumulated a bit of debt, speak to a wealth coach to determine how you can reduce the amount you owe.
Remember that taking on debt can also affect your borrowing power. You don't want a few credit cards or a bad credit history to limit the amount you can borrow from a mortgage lender.
To grow your wealth
Whether it's retiring by 45 or saving up enough to pay for your kids' future education, everyone has their reasons why they need to grow their wealth. The hard part is figuring out which strategy is suitable for your goals.
However, planning for your financial future is becoming more important than ever. Changes to the pension age means that you might have to come up with another way to finance your retirement before you reach the new age.
This means it's crucial you start thinking about financial strategies for saving as early as possible. You don't want to leave it until the last minute and find out you can't reach your goals in the timeframe you want.
One simple way for Australians to growth their wealth is through property investment. If you already own a home, you can simply tap into existing equity in your loan to help pay for a rental property. If you leave this property to grow in value for many years, you'll be in a much better position to grow your wealth for the future.