Plan Your Financial Life
Are you planning or dreaming? Or is your head in the sand?
Whether we like it or not the world has changed dramatically in the modern era and the pace of change is increasing. The world we “boomers” were born into no longer exists. In spite of the economic prosperity the country is said to be experiencing, the gap between the “haves” and the “havenots” is widening. It’s no longer safe to go along merrily from day to day assuming that the future will take care of itself. It simply won’t. It’s never too late to plan but every day wasted increases the size of the mountain you’ll have to climb.
Try this exercise. Ask yourself what type of lifestyle you’d like to live in the future and put a “today’s dollar” value on what that might cost. For example you might think that you’d like to live a lifestyle similar to that you live now, but it might cost somewhat less because you’ll no longer be supporting children. Then nominate when you might want that lifestyle to begin. Then look to the means you’ll have to achieve those goals. For example you might have some investments, including your superannuation. Now is this likely to be sufficient to achieve your goals? If not, what can you do?
Spend less? Save more? Accept higher investment risks? Lower your sights? Plan to work a little longer? And so it goes on; goals, means, and options.
Now if you know the answers (and many don’t even understand the question) then you may have a chance of achieving your goals. If you don’t, you’re dreaming! Do you know how much it actually costs you to live now? Do you have any idea of how much you waste? Are your existing affairs arranged in the most sensible way? Why not seek a little education, do a budget (shudder). And if all else fails, try seeking professional advice.
Peter Lake is an Authorised Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 (AMPFP), AFS Licence No. 232706. Any advice contained in this document is of a general nature only and does not constitute personal financial product advice. In preparing the advice no account was taken of the objectives, financial situation or needs of any particular person. Therefore, before making any decision, readers should consider the appropriateness of the advice with regard to their particular objectives, financial situation and needs.
