If you’ve ever seen me present you will have heard me say countless times that there are three things that make us wealthier.
- Sorting out your Super
- Sorting out your Savings
- Giving yourself a Security blanket
These three “S’s” are my financial bible. If these three areas are working in harmony then you are well on your way to a wealthier position and financial freedom.
If you have ever worked, no doubt you have a super fund. If, however, you are like most people, you have multiple super funds. Unnecessary fees, poor performance and commissions to non-servicing advisers is chewing away your nest egg. It may seem like retirement is a long away, but believe me, it sneaks up on you when you least expect it. Sorting out your Super should be a priority, even if you don’t understand it.
Savings is a simple mathematical formula. Income minus Expenses equals Savings. If you can increase your income, reduce your expenses you will have more savings. Invest these wisely and you’ll be well on your way to financial freedom. Sounds simple, right? Wrong! For most people they actually spend more than they earn, or worse, they have no idea where their money goes each month. Sorting out your Savings and getting this invested wisely requires a little discipline, but well worth the rewards.
Your entire retirement nest egg depends on one thing and one thing only, your ability to earn an income. If you don’t have an income, then it’s all worth nothing. Investment properties rely on your income for a negative gearing strategy. Your super relies on your income to receive the 9% super guarantee. Your savings depend on your income. If you had no income, through illness or injury, what would you do? Rely on family? Deplete their nest egg? What about hospital bills? The greatest piece of advice I give all my clients is to ensure they have appropriate insurance. You need to protect your most important asset; YOU! You protect your car and contents but these are worth nothing if you can’t pay the premiums! A great tip is to look at insurance through your super, this way you are not out of pocket with premiums each month. The best news is that insurance premiums are tax deductible to your super fund. Win-Win!
Like I said, these are my three key strategies to improving your financial situation and setting a path to financial freedom. It’s hard, but the easy option is just that, easy, it’s doesn’t pay off in the long run…