Financial Solutions In Your 30s
If you are thinking about getting financial advice in your 30s, you will no doubt asked yourself if you really need a financial plan.
Many people assume they don’t need financial advice because they haven’t accumulated enough (or any) assets yet or because they are already doing everything right. This thinking is quite simply wrong. Studies have shown that those who access financial advice benefit financially as a result, after taking into consideration the cost of the advice. It’s really that simple.
Most people will benefit from access to quality personal or general financial advice and access to factual information especially at the time of key life events and transitions. Having a solid plan can change your life’s trajectory. Now is that time to start exploring ways to build your wealth and prepare for the curve balls life throws at you. “The best time to plant a tree was 20 years ago. The next best time is today”. – Chinese Proverb
They say that your 20s are for learning and your 30s are for earning. You may be establishing and building a career or perhaps starting a family. Or you may be thinking about making your first property investment. Axios Financial’s team of financial planners act as your coach and facilitator for making sense of the financial toolbox.
How Axios Financial Can Help
Budgeting and goal setting
Savings and wealth creation strategies
Career changes or redundancy
High levels of debt due to mortgage or car
Mortgage and debt reduction strategies
Purchasing your first property
Future financial security
Peter works in IT and is the son of long-standing Axios Financial clients. In their 30’s, Peter and Louise were married and returned home to Australia after living abroad. They wanted to purchase a home in an affluent inner-city Melbourne suburb and came to Axios Financial to discuss their options.
We discussed the type of home they wanted to buy in Melbourne and how much they could afford to pay and it became apparent that they would need to commit to a huge mortgage to acquire a home in the desired suburb. In order to settle in this area they would need to consider an apartment that they would most likely outgrow quickly as they were planning on starting a family.
Whilst they were able to service the loan when they were both working, the mortgage repayment would have been almost all of Louise’s take home wage. Thinking about starting a family and dropping to one wage would likely result in financial stress. Plus it did not allow for any buffer in case life threw them a curve ball.
Based on advice from Axios Financial, Peter and Louise decided to move into a good area in Melbourne- one that provided better value while still delivering the lifestyle they desired. They decided to rent and get a feel for the area first. They have come to love the area and are now considering schools when planning for a family. They are very happy with this suburb and would buy a home in this area in the future. They are also happy to rent because they realise that at this stage of their life, they could actually rent a better quality home than they could afford to buy and for less of a financial commitment and a better saving outcome.
Peter and Louise are now saving and investing to buy their dream home within the next 5-6 years. They will have a substantial deposit saved, leaving them with a very manageable debt that they can pay off in around 9-10 years time. This strategy would save them approximately $400,000 in loan interest repayments, enabling them to better direct their funds into assets that will produce an additional income and allowing for the potential of capital growth to add to their funds over the next 5-6 years. In addition they have the appropriate level of life, trauma and disability insurance to protect them and their family in the future.
The information provided is of a general nature and does not take into account your personal needs and financial circumstances. You should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs.
For specialist advice from award winning financial planners, contact Axios Financial Solutions. As a referall based business, we appreciate your referrals to family and friends.