Joining financial forces sooner rather than later will help you establish strong financial foundations and values to last a lifetime.
The ‘great Australian dream’ of home ownership is fairly widely accepted these days. It’s seen as natural to want to own your own home – or more specifically, a stand-alone home on a quarter acre block. But when you ask people why they want to own a home, it gets a bit more complicated. Things like security to raise a family, the ability to renovate and decorate, and the freedom to own pets are often cited. But those objectives shift when you’re heading towards retirement. That’s why it’s important to think about the role that homeownership plays in your overall retirement plan.
From the time you buy your home, to the life of your mortgage and beyond, the way you deal with your home as an asset can have a big impact on your quality of life once you’ve retired.
Aussies love travelling overseas – it’s a simple fact. According to ABS stats, more of us head abroad for our holidays than ever before (ABS, 3401.0). This is despite the fact that the Aussie dollar hasn’t fared too well of late, making it more expensive for us to get our hands on other currencies to make purchases at our destinations.
So how does one afford an overseas holiday with an underperforming Aussie dollar? It’s not necessarily about resorting to hitchhiking and staying in backpacker hostels. Rather, it’s about being smart with your choice of destination. There are a number of countries around the world where luxury hotels, shopping and local activities are still affordable for Australians.
“While money can’t buy happiness, it certainly lets you choose your own form of misery.”
Groucho Marx might have been joking when he said this, but there’s no getting around it: money is a prime source of tension in marriages and domestic partnerships right around Australia. A survey by Relationships Australia found that 70% of couples are affected by disagreements about money. 84% of respondents said money troubles would be more likely to push people apart than bring them together. Cooperating on financial matters is well worth it for most couples. It’s not just your bank balance which will benefit from working together. Working through money issues with your partner can help develop communication skills, improve bonding through a sense of teamwork, and set up shared values to pass on to children.
When you visualise your retirement, what do you see? If you’re like thousands of other Aussies, chances are you think about getting stuck into a hobby, spending more time with your family, seeing the world, or exploring the great outdoors right here in our own backyard. Whatever your image of the ideal retirement, it gives you something to work towards; a goal to keep you on track.
A common misconception about income protection insurance is that it’s only for high-earners, but this isn’t the case. In reality, no one can afford to be without this safety net, regardless of the amount of income you earn.
One fact of life is certain, we don’t stay young forever. As we grow older, everyday tasks can become tiresome; we suffer inevitable aches and pains and often have difficulty remembering things. But the ageing process should be seen as a privilege. We have retirement to look forward to, access to good health care and the opportunity to spend more time with the people we love. To ensure we’re able to enjoy a long and happy retirement, it’s important to plan for this future.
Healthy eating doesn’t have to be expensive. With a few simple tweaks to what you buy and how you prep for the week, you could be saving hundreds of dollars every year. What many of us don’t realise is that by eating healthier, it will actually save you money. You’ll feel better, sleep better and end up spending less time with your doctor and spend more time living a healthy life.
With the introduction of the $1.6 million transfer balance cap and related restrictions around contributions and the retention of death benefits inside superannuation, the question of whether you should also be looking to build wealth outside of super is becoming more widely-asked.