This article was originally posted on The Pivot Blog.
In your 30’s you’re starting to really hit your straps with income, and if you don’t get smart with your money it can mean wasted opportunities and slow progress getting ahead.
You should take advantage of increasing income to make some serious progress with your money, and setting up your strategy so you can live your ideal lifestyle today while striking some balance setting yourself up for the future.
Again cashflow is key to the success of your strategy and you should harness your cashflow to take full advantage of your opportunities. To get your cashflow strategy humming you should think about your targets, understand your options, and set up a clear plan so you know what you’re aiming for and what your next step is in getting ahead.
Once you have your plan you need to make it easy for yourself to get the outcomes you’ve planned for. Nail your cashflow strategy and you’ll reap the benefits in terms of investments and lifestyle today and big time in the future, so you’re not forced to work until you’re too old to enjoy your lifestyle.
This is the time when you should be looking seriously about property investing to drive future income, and it’s critical you get your property strategy right from the start so you get the best possible outcomes.
Understanding your options, how much to spend, how much to borrow, and how to structure (i.e. owner occupied vs. investment) are all areas that will have a huge impact on the future, as well as your cashflow and lifestyle today. Take the time to explore your options and map out your strategy so you can buy with full confidence knowing you’re making the best decision for you.
You should also be thinking about strategies to cut your tax bill, because every dollar of tax you save is an extra dollar you can use for your investments or lifestyle today. Make sure your investments are set up tax effectively so you don’t make mistakes that will hold you back and be costly to unwind, and explore other ways you can cut your tax bill so you can hold onto more of your income today.
If you haven’t already set up personal insurance to manage key risks, do this now while it’s still cheap and think about using fixed premiums to keep the cost of this low in the future. There are ways you can set this up smarter (like funding through superannuation) so you can cover your most important risks without impacting your cashflow.
In your 30’s another common issue is planning for marriage and children and the associated costs, so you should get clear on your money targets to so you take advantage of opportunities and avoid problems that can hold you back.
In a time for big decisions around property and possibly time out of the workforce for children, this is a time where you will get huge benefit out of some comprehensive planning. Speak to an Adviser that can help you plan out your options so you can make the right decisions and set up a clear path to follow to get the outcomes you want out of your money.
Ben Nash is Director and Founder of Pivot Wealth, a Financial Advice and Education firm that helps young professionals confidently balance their lifestyle and money. Pivot also run a series of short money workshops to help you get more out of your money.