Recently we have all been going through a challenging time with COVID-19 and this has added financial stress not only to our finances but also to our overall mental health. With the current risk of COVID-19 and the market, things have been up and down but with the market now starting to stabilise as we slowly pull out of restrictions, now more than ever is the time to look at your financial position.
You may ask Where do I fit in? Am I late bloomer when it comes to finances?
To everyone who is asking this question, I want to let you know that I’m in my early 30’s. I’ve been focusing on saving for home at this current moment with my husband of four years and it’s been rough. The journey has been full of pitfalls, plenty of late-night tears and anxiety and wishing I had saved more in my earlier years. The truth is I also had no idea what investing was and to this day I’m still peeling back the orange to find a multiple of layers.
Lately, I’ve seen some crazy changes in the market and whilst it’s been tough to find balance. I’ve seen a remarkable shift not only in my own personal finances but also my own money mindset. There is nothing wrong with being a late bloomer and it happens at many different ages but I found this age to be the trickiest to navigate when it comes to financial independence. Lately, my goals have shifted and changed and I wanted to share some lessons I’ve learnt for finding my feet and getting those keys. So, for everyone reading this. Here are five lessons I’ve learnt from my 20’s to my early 30’s and why listening to Stephen Pollard is a good idea.
♥ Don’t put your investments on a credit card. In fact, if you can avoid a credit card all together do it.
Credit card debt is something that we first learnt about at school, yet the idea of a credit card to spend on the things we can’t afford can be tempting. Understanding the risks before you get a card is a good idea but what about when you’re trapped into paying one-off? If all you earn goes onto paying off these high-interest rates you will find you will sink deeper and deeper into debt regardless of how shiny the card is. The best thing to do here is to look at what you have and then decide if you can afford this even if you did have a home loan.
♥ Pay off your debt slowly and overtime but do actually pay it.
Student loans, credit card debts, car loans they all seem pretty good at the time when we borrow the money but after a while, they actually gain interest. Paying off your debt before you buy a house is tricky but not impossible. Putting those direct debit payments may help you pay it on time, every time. You can also slowly pay this off but making sure you do quickly is the priority.
♥ Take a look at where you want to go. Everyone wants everything now but those goals you have to take time.
Our generation seems to want everything now, from iPhone payment plans to house loans we decide to risk it all for what we want. Do we really have the income to support everything that is coming out of our bank account? Asking yourself the question of not only can I afford it but can I save 10% on top of all will allow you to stop and think before you buy and invest in something new. Plus having clear goals and a pathway with your financial plan will put your mind at ease as you can look at ways to increase your finances and which avenues to invest in. Take time to invest in your superannuation and don’t spend so easily when you have the money.
♥ If you are going to buy a house make sure you know of all the pitfalls. So, you don’t fall in.
Home loans and investment properties can be pretty frustrating when you first look at everything. Not only do you need to know how much you have saved for the portion of your investment but you need 10-20% saved even before you buy. Savings, prices and home loans can be a balancing act and this is why it pays to speak to someone who understands not only the market but how much financially you may need to reach your goal.
♥ Invest in someone who knows what they are doing and have made more mistakes than you.
Finding a financial planner that works for you is important as they not only help you with your financial outlook but they also look at the roadmap of how, what, when, where and why and offer advice on all areas of investment right up to retirement. Having someone who has been there before truly does improve your outlook as you can begin to understand the broader picture, move forward and succeed in your relevant life goals.
The next generation is so important and whilst it’s easy at the moment to spend, spend due to current government initiatives. The most important thing we can do is instead shift that gear into things we actually need. I’ve found at 30 and around the 20 mark, my goals instead started to shift I wanted to bloom into spending money on a $200 pair of shoes into saving and purchasing our first house.
The truth is I wish I had saved earlier and that is not a feeling I wish on anyone because I sat with the real-estate agent and wished I had the deposit. I know everyone has different journey’s and pathways but if you can invest in the bigger things earlier on and save you will be better off further down the track. Investing in a qualified financial planner doesn’t mean little it means a lot and for your monthly Macdonald’s run, you could instead be investing in something that = your future. The reason Stephen is so good at his job is that he understands people and he works with them on their financial goals, he actually wants you to succeed and isn’t looking for high commission but just the blessing of helping people and adding value to their lives. So, put down that Macdonald’s and instead actively go out and do the work. In the end, you will be able to look back and smile. If you are a late bloomer it’s ok, he can help you plan and look at the pathways that will help you thrive.