As an adviser, it’s my job to show people the facts and for them to choose a direction.
A working couple earning an average wage came to me wanting to know if they could afford to buy a bigger home. They had just fallen pregnant with baby number two and were already living in a place that was way too small for them. After calculating their cash flow, they realised they had over-committed to their current mortgage and it was eating away at their quality of life. They had multiple credit card debts and fixed tax repayments with the Australian Taxation Office (ATO). Committing to the good old Australian dream was crippling them financially.
With all the facts laid bare, the couple decided to sell their apartment and rent a house instead, to accommodate their expanding family. The money they received for their apartment allowed them to clear their debts and live a much less stressful life, and the rent they now pay is significantly less than their mortgage repayments.
In contrast, a high-income earning couple came to see me for a general review of their finances. They were both stretched to their limit with work commitments and raising three children, all of whom were in private education. They already owned their home outright and provided a prosperous life for their family, but the stress was burning them out. Their driving purpose (the reason they were working so hard) was to retire by the age of 50 and they wanted to know how they could make this happen.
The first step was to identify how much it would cost for them to live the life they wanted in retirement. After the analysis, both were shocked at just how much it cost to live their lives. With this dollar figure in mind, we calculated how much money they needed to fund their retirement for the rest of their lives without ever having to work again. In both cases, these families made a conscious choice to seek clarity around their finances and actively manage their personal finances with a clear purpose in mind.
Is it time for you to choose your own adventure?
Having a third party privy to your financial position can often shine a bright exactly where it needs to shine to see what needs to be seen.
Contact me if you’re looking for that third party!
