This is the position they started in:
Luke worked full time on a good income, Nicky worked part-time, they have 3 children. They had a home, but had lots of personal debt and were struggling to enjoy life because they constantly had to worry about paying the debts despite their good income. They were nervous to trust anyone because they didn’t think they could be helped.
Heard had seen another financial adviser and he had just tried to get them to move their superannuation to a product that paid the adviser commission and had tried to sell them lots of insurance, and didn’t help them at all with their issue.
Had the first meeting, put their mind at ease because we could clearly show them several strategies that applied to their situation to help them budget and control spending, free up cashflow and use this and other strategies to clear their personal debt, and then when the personal debt was gone start paying down their mortgage and redrawing this to invest to create wealth and extra income.
They agreed to go ahead with our fixed fee for advice and we prepared the full financial plan for them.
This was the goal, pay off their personal debt and then start investing to create wealth and extra income so they could enjoy life as a family an take holdiays and spend a little more on themselves.
These were the challenges, starting a family meant a reduction in income and they planned to move to Sydney for work, which meant higher cost of living.
This is how it unfolded, we used budgeting, cashflow and debt management strategies to reduce their $100k of personal debt done to nothing in 3 years, this then created a very healthy surplus cashflow, which we used to pay down their mortgage a little until they could then invest in investments that grows for them while not requiring any of their income so that they then have more to spend on themselves and take holidays, all while their investments are growing and providing additional income.
This is the result / current position, 5 years later they have no personal debt, a rapidly reducing mortgage, and investments worth over $300,000 that are growing time and providing an extra $10,000 – $15,000 of income each year.