To achieve financial security and enjoy your money in the process, here’s what you should aim to buy.
1. Your own home
Buying a home increases debt but it’s a great foundation for building wealth and providing a base for your family – not all debt is bad, assuming the investment grows in value over time.
It’s tough to get on the property ladder but that isn’t stopping young Australians with a quarter of 18 to 24 year olds already saving for their first home. Put money into a savings account for a loan deposit, do your research on the market and talk to a mortgage advisor about how to secure a home loan with competitive rates.
2. A new car
Australians love their cars with more than 1.1 million Aussies buying a new car in 2014. You might have a trusty ’02 Holden Commodore but what about upgrading to that brand new car you always desired.
Consider a shiny Toyota or Mazda, even stick with the Holden– the three brands hold the top places for Australia’s favourite cars. When financing your purchase, you might need a personal loan. Pay attention to the loan terms and understand what you’re eligible for and can afford.
3. An investment portfolio
Investing can be a useful way to boost savings and build long-term wealth so consider placing your money into something beyond a basic savings account.
By investing now, money will start compounding early on, earning interest which generates more interest. In ten years’ time, you’ll be better off because you chose to invest early and kept up the investments over time. Ensure you seek professional advice and guidance.
4. Suitable insurances
It’s not the most exciting purchase but it can be the most important. Before turning 30, take measures to protect two of your greatest assets – your income and your health. If you lost these assets for whatever reason, you won’t be able to pay the bills, home loan or other household expenses.
Income protection insurance replaces income lost through your inability to work (usually through sickness or injury but all plans vary) and allows you to maintain your lifestyle so speak to your financial planner, your bank or selected insurance company about the available options.
5. A final splurge
Everyone should experience an epic travel trip before they turn 30 and the average Aussie spends the equivalent of $246 a month on their holidays.
To ensure a balance between your life and future commitments, there’s no time like the present to travel someplace exotic to lose yourself in a foreign destination and unplug from the world. Put away some money each week and watch how quickly you save for the trip.