My wife and I have a young family. Our only income is from my wage (about $90K) how can we best balance everyday needs with our desire for long term wealth creation?
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You’re in a great position! You have a wife, children and a strong income – you’re blessed!
The best way you can build your wealth from here is to strengthen your marriage as much as you can (communication and personal growth); invest great values and a lot of love into your children, and align your work to your personal purpose. This is the substance of true wealth which many of the richest and the poorest of our society wish for.
But you probably want to know what to do with your money too. And the only correct answer is, frustratingly, “it depends”.
It depends on whether you have a home or not, whether you are in debt or not, on what your lifestyle is like, what your career and personal goals are, on whether you’re happy to rent or you want your own home, and on what your skills and passions are. You should meet with a values-based financial adviser to discuss what’s right for you.
Here are some tips for you though, which should be relevant no matter your circumstances:
· You should have an emergency fund of cash which can cover the most expensive short term emergency imaginable (something like 3 months of income)
· You need to be spending less than you earn, after tax, so that you can set aside a regular amount to save each pay
· You need to have a spending plan, to reduce the stress of managing the bills and your income, and to build confidence in your spending decisions
· You should explore your investment options and begin learning strategies to build wealth
· You should also explore your future financial risks and identify which insurances to hold
· You should get educated on your superannuation and make sure it’s set up right for the long term
· You should begin building a team of professionals around you who will help you live your best life
While the Adviser Ratings Website facilitates the question and answer functionality, all such communications are between users and authorised financial advisers, of which Adviser Ratings has no affiliation. Adviser Ratings is not the advice provider and does not provide financial product advice and only provides information that is general in nature.