What is your idea of Financial Freedom?
With Christmas holidays now a distant memory and school back soon, 2020 is in full swing and it’s time to start thinking about our financial position and objectives for the new year. Most people have the objective of “Financial Freedom”, but what exactly is financial freedom?
What does financial freedom mean to you and your family personally? Is it the ability to travel the world or build a dream home? To be able to enjoy a simple but active retirement, and support some good causes? To put your children through private schools or to have a large investment fund?
We all have different desires and goals in life, but most of us share the dream that one day we would like to achieve our particular version of ‘financial freedom’. The challenge is that most of us don’t really know what it takes to turn our goals, be they vague wishes or burning desires, into reality. However, with just a little bit of forethought, some expert advice, and by acting on that advice, we are much more likely to reach that goal of financial freedom.
Making the List
Your key ally in achieving your definition of financial freedom is your financial adviser, and amongst the most important things your adviser will need to know is what your goals are. So make a list and prioritise it. Which of your goals are essential, and which ones are you willing to compromise on?
Just as we have different goals, so do we have different financial resources. One of the first things your adviser will do is run a reality check. Given your income and expenditure, job outlook, health and family situation, are your goals realistic and achievable? Your adviser will also check if key goals are missing. For example, life insurance can be an essential tool for protecting your family’s future financial freedom, yet many people overlook it.
With the big picture now clear, your adviser can develop strategies that will bring that goal of financial freedom closer to fruition.
When’s the perfect time to start your journey to financial freedom?
Because the sooner you get started, the sooner your goals will be achieved. Over time compound growth and even interest do add up – meaning the earlier you start saving and working towards your goals, the less investment funds you would need initially.
Think about your goals and desires. Importantly, write them down. Is it something you can achieve on your own? Do you need the assistance of a financial adviser or investment manager? Take action and take those first critical first steps towards achieving your financial freedom.
Important Information and Disclaimer
MK Wealth Solutions is a Corporate Authorised Representative No 100223 of Synchron ABN 33 007 207 650 AFSL 243313. The information provided in this article has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your personal financial adviser before you make any decision regarding any products mentioned in this article. Whilst care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither MK Wealth Solutions and Synchron, nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information. Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.