Financial Planning for the Young Professional
By Arijeet Chakrabarty
Knowing how to manage money is important for everyone irrespective of one’s profession, financial circumstances, lifestyle etc. Young adults need to understand that financial planning for the future can no longer be restricted to those approaching retirement. To get ahead in life one needs to plan one’s finances in addition to other responsibilities. As a young professional just starting out, the future can seem a long way off so it’s understandable not to spend too much time thinking about things like investing, insurance or even retirement. However, life moves pretty quickly and with the ever-increasing life expectancy in Australia and the uncertain future of social security it is never a bad idea to put a plan into perspective.
Financially Planning is about breaking down long term goals into smaller achievable goals and a financial adviser can help young people start their financial journey by focusing on some basic principles such as working out a budget, putting goals and objectives into perspective, sorting out superannuation and even starting off an investment portfolio. It is always better to start thinking about your long-term financial success early as planning over the long term means that you will have the potential to achieve more.
Typically a young adult should understand the importance of:
- Money management
- Working out a budget
- Identifying his or her goals
- Finding the right superannuation fund
- Reviewing/updating personal insurances
Most importantly, as life circumstances change, one should have a plan that can be adapted to ensure it’s still working for the individual.
For a young professional, it is always wise to get off to a good start so you can feel confident about your future!