At this stage, there is usually some sort of responsibility – be it a mortgage, marriage or children.
Your career would most likely be at a more advanced stage than in your 20’s, with a higher income and a more senior position.
This is why having a solid foundation in risk management is essential from the start. If you began managing your money in your 20’s, by now you’d have a portfolio of shares, managed funds or in-vestment properties.
Income is a goal that creates the lifestyle you want, be it the clothes you wear or the car you drive. The best way to provide for your family is the gradual accumulation of a nest egg in the event of you no longer being able to work.
Think of a nest egg – what is it? The egg is your assets and money, the nest is the house which pro-tects your egg so it doesn’t break. In this way, you can ensure your bases are covered as liabilities in this age bracket tend to run high with children and a mortgage.
If you’re just beginning to start financial planning now, you need to look at your current expense and liabilities (for instance, credit card debt) and how to minimise them.
This is essential to getting your financial health in order and understanding that the basic of money management in finance is learning to prioritise.
Once you understand what income is coming in and going out to manage a budget and paying off any debt that you have, you can get rid of bad debt such as credit cards and personal loans (none of which provide assets in the future) and look at accumulating good debt, like a house.
Superannuation is something else to take advantage of as it is a long term investment. Look to maximise growth via the compounding effect – growing your super at 8% as opposed to 4% – which makes a huge difference after 20 years.
A financial planner can help you choose the right super and reviewing the investment inside the ac-tual super. Some people keep their super in default, while other people are fearful of losing money and invest towards cash and term deposits.
Still others opt for long term investments by investing in growth assets such as local and interna-tional shares or property.
The beauty of superannuation is that it has to stay put until the age of 65, so even if investment goes down you have enough time to recover. Always look for a long-term return on your superan-nuation fund.
