As you’re leaving school, finishing university and getting your first job, retirement is most likely the last thing on your mind. But taking a few steps to set yourself up in your 20s can go a long way to avoiding financial stress in later life. It’s never too early to start preparing for your future.
Set some goals
It’s much easier to get what you want, if you’re clear about what exactly it is you want. We all want to have feel fulfilled, but what does this mean to you and how are you going to achieve it. Of course these goals may change but the planning will be the same.
Consider setting yourself some short, medium and long term goals.
Short term goals might be taking a holiday or buying a car. These are the things you should be putting money towards now, on a regular basis.
Medium term goals can set you up for the next stage in life. Will you want to buy a house, raise a family? You might not want to put all your money towards these right now but they will require planning and saving.
Long term goals will most likely your retirement. You superannuation fund will go a long way to determining this, so it’s important to ensure your employer is contributing correctly.
Pay down your debt
Putting aside savings for a car is all well and good, but any debts you have may affect your ability to reach your financial goals in the short to medium, or even long term. Don’t forget to include any debt repayments as part of your budget.
Budgeting
Budgeting doesn’t mean living on baked beans while you’re friends are out eating at a nice restaurant. What it does mean is being realistic about exactly how much money you are earning and spending. Creating a budget is the best way to track your expenses and avoid living beyond your means. Try some of these great budgeting apps to help you manage the process.
Automatic savings
Once you have created your budget and know exactly how much you have available, you can start saving for your goals. Setting up an automatic payment to a separate savings account will help keep you on track and stop the temptation to dip into your funds.
Sort your Super
For any job you hold over the age of 18 and earn more than $450 a month, or any job in which you work 30 hours or more per week, your employer pays out superannuation. Unless you specify otherwise, these workplaces pay your super to an account with their chosen super fund. Which means if you have had four different jobs, you could have as many as four different superannuation accounts, and be paying four sets of fees.
Combining these funds into the one superannuation account means you only pay one set of account fees, but also means it’s easier to track how much money you have to set you up for your retirement.
Recent Comments