22 Sep Financial Planning: Best Tips for Australian Millennials

Financial Planning: Best Tips for Australian Millennials to Achieve More with their Money

Millennials are people who know how to live. Whether by travelling or buying the things that bring them joy, this generation knows how to live their best life. The one pitfall of many millennials is that they sometimes have trouble managing their money for the best results. This is where the services of a skilled financial advisor may come in. 

The good news is that millennials have time on their side. Even the older millennials have only just begun their careers and will have plenty of time to save for their future. The key is to start working on a financial plan now so that you can grow your money and secure financial freedom by the time it really matters. 

This blog post will shed some light on financial planning for millennials and the benefit of starting earlier rather than later. 

Best Tips for Australian Millennials

The young adults of today understand how important it is to be financially secure. With rising house costs, inflation, and increasingly busy careers, growing your money has never been more important. 

When to Start Seriously Looking at Your Finances

As soon as you’re ready. 

People in their 20s and 30s tend to be at very different stages of their lives. But the right time to start taking your money seriously is when you want to. 

This may be as you start looking to buy your first home, or when you’re thinking about having kids, or maybe you want to explore your investment options?

Your late 20s and 30s are when life can start becoming complex – and this means your finances become complex as well. In my opinion, it’s best to start your financial plan as soon as possible so you can stay organised and feel confident.

How to Start

1 – What Do Your Expenses Look like?

Before you make any big decision with your finances, it’s best to determine what your living expenses are on a day-to-day basis. 

Take a look at your rent, mortgage payments, and other personal loans, and regular things like food and coffee. 

Once you know how much you’re spending, you can:

• Have a better understanding of your preferred lifestyle and the associated costs
• Make decisions about where you can save money
• Understand how much money you have left over to spend or invest
• Create an effective budget

2 –  Create a Budget

You may already have a budget that you’re doing well with and that is allowing you to save. But a financial advisor can help you determine a more personalised and effective budget.

This may include creating more ambitious savings goals and savings accounts that automate payments.

Perhaps it means choosing one thing a month that you are going to make a conscious effort to cut down on.

A more effective budget may even mean a simpler budget which could make sticking with it a whole lot easier. 

3 – Consider Investment Opportunities

Many of the millennials I work with are super interested in investing and growing their money. 

The first thing I want to point out is that investing is not an overnight “get-rich-quick” scheme. Smart investing always has a long-term goal in mind.

My next tip for millennial investors is to diversify.

 

This means placing your money into an array of investments. This generally means lowering your risk because if one of your investments loses value, you’ll be better protected because you didn’t place all your eggs in one basket!

As part of your investment strategy, you may choose to contribute some of your pre-tax salary to your superannuation fund. This can all happen through your employer so you don’t even have to make any manual transfers. Plus, there can be enormous tax-saving benefits to voluntarily concessional super contributions as well. As noted in the linked article, there are caps to the amount that you can contribute; which is why it is important to seek financial advice from a qualified representative.

Plus, this doesn’t necessarily mean that you will never see that money until you retire. If you are planning to buy your first home in the near future, you can actually make a withdrawal out of your super contributions to use as a house deposit. 

An experienced financial planner can help you with a money-saving budget and to make smart decisions with your budget and your super. 

By investing earlier in life, your money will grow over time with compound interest, even when you experience market fluctuations from time to time. Remember, it’s all about the long-term.

Ready to grow your money?

Keep in mind that as a millennial, you are in a prime position to start taking your finances seriously and growing your money.

Working with an experienced financial planner sooner will help ensure that you can enjoy your future the way you want without financial stress. 

Need help with financial planning on the Central Coast? Work with our certified financial planners today to achieve your goals. 

Contact Leo Wealth today and get closer to financial freedom!