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Planner Says: “Personal Finance is a Game and You can Win”

Announcement posted by Purely Finance 30 Sep 2014

Financial planner in Perth shares personal finance plan for success on company blog.
Perth, WA, 30 September 2014 - Australians are more attentive to saving for their retirement now, thanks to superannuation. While most financial planners are happy that so many Australians are paying attention, they also see a downside that they consider dangerous: the belief that just making mandatory contributions to their super funds is enough to ensure a comfortable retirement.

Nick Aves, Director of Purely Finance, is of the opinion that one must start as early as possible and use a structured approach to ensure both their present and their future. According to Mr Aves, “To take care of your financial future, you also have to pay a lot of attention in the present. Luckily, there are some steps that anyone can take right now to get started and get on the right track.”

One of the most important things someone can do to maximise their finances is to make sure that their job is paying them what they are worth on the open market. If someone is being paid $80,000 a year to do a job that is worth $90,000 everywhere else, they are leaving a lot of money on the table. Over time, that can add up.

Once a person makes sure they are getting paid enough, they need to make lifestyle adjustments that ensure they are spending less than they make. Mr Aves recommends formulating a budget and sticking to it.

Another way to take control of one’s financial situation is to pay off credit debt as soon as possible. Credit card debt is the most expensive debt for most consumers and can derail the dreams of the most well-meaning small investor. Mr Aves recommends paying off the cards in order of interest rate, highest rate first. Then he recommends keeping one credit card for emergencies and paying it within 30 days whenever possible.

Mr Aves is also a firm believer that one should make extra contributions to their superannuation funds. Those who make more than $37,500 can employ a strategy called “salary sacrificing” to not only make their “nest egg” bigger, but save on taxes in the process. This provides more money in both the present and the future.

It is also important to put away a percentage of one’s pay in a savings account every month. This money can be used for investments or paying off debts later, but it is important to have a “buffer” for unforeseen expenses and a savings account makes one’s credit more attractive and can earn lower interest rates on car or home loans.

According to Mr Aves, the last piece of the puzzle is to always hire a professional financial adviser: “To win the game of personal finance, you must hire a professional financial planner. In today’s complex system, there is too much money at stake for even the brightest amateur investor to risk going it alone.”

Purely Finance offers personal finance and mortgage brokering services in Perth. Due to their status as both mortgage brokers and financial advisers, they specialise in helping small to medium investors with investment properties. For a home loan or financial planning services, call (08) 9453 8888 or visit their website: http://www.purelyfinance.com.au/.