Let’s take a closer look at how your financial wellness is likely to change and what you can do to reduce your stress levels.
When you’re starting out it’s an exciting time. You know you need to start saving for the bigger ticket items but it all seems a bit abstract. Meanwhile you might be on a graduate or apprentice wage and facing peer pressure to spend. To get on top of your finances it’s a good idea to start with the basics - budgeting, debt and saving. Get those right and you’re on the way to establishing good habits for life.
There’s no time to draw breath. You’re juggling frantically at home and at work…it’s easy to lose track of what’s going out every week, let alone the bigger financial picture. Any talk about long-term retirement planning can seem unrealistic faced with the day-to-day demands of putting food on the table and the need to pay any school fees and keep up with mortgage repayments. You’re at a stage of life when planning is critical. Are your investments inside and outside super working as hard as possible and do you have the right balance between risk and return for your life stage?
The end is finally in sight. The kids have flown the coop, the mortgage is either paid off or at least more manageable and your financial commitments are finally starting to diminish. You’re potentially still earning a decent wage but now you have fewer outgoings you might be able to free up some more funds for your super savings. Retirement by now should be front of mind—both in terms of what sort of lifestyle you want to enjoy and how you’re planning to finance it. It’s important to make the most of these final years in the workforce to set yourself up.
After worrying about money, family and work for so long you’re relishing a simpler life. You’ve worked hard to put all the pieces in place and now it’s time to enjoy a well-earned retirement. You’re still concerned about interest rates, retirement income and making provision for health and aged care. And you might be keeping your hand in with some consulting, part-time or voluntary work. But good health permitting there’s more time for the good things in life.
Whatever your stage of life...
Article by ©AMP Life Limited. First published 15 October 2019.
i Financial Wellness in the Australian Workplace, The Behavioural Architects, Report 2018
General Disclaimer: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. Please seek personal financial advice prior to acting on this information.