tarting a new job can be exciting, but it can also be daunting, especially for those stepping out of school and into a career. I can still remember taking that all-important leap into the workforce and the fun of getting my first ‘pay packet’. So what advice can I give trainees, apprentices and newbies, to assist them in achieving their personal goals, no matter what industry they’re working in?
- Don’t blow it all – Yes, your parents are right. You need to save money. You don’t miss what you don’t have, so starting those savings habits now will put you in good stead for the future. Those dollars saved could enable you to purchase or put down a healthy deposit on your own car, house or travel.
- Don’t spend more than what you have – As soon as you have a steady job, there’s a real temptation to go and get a credit card. Be careful. Reports show that many young Australians are living beyond their means, racking up phone bills and credit-card debts that they cannot pay back. If you do this, you may end up with a bad credit rating which could stop you from being able to borrow money to buy a house or car down the track.
- Choice of Super – Although retirement is the last thing on your mind, ensuring you’ve got the right superannuation set up now could mean tens of thousands of dollars in the future. The power of your super is in your hands. You can choose the super fund you want your employer contributions paid into. You may also be able to choose how your savings are invested. Remember, even though you can’t access it until you’re older, super is YOUR money, so take an interest in it.
- Life Insurance – Yes you’re young, fit and healthy but you’re not invincible. Setting up life and other personal insurances like ‘income protection’ may look confusing and complicated, but take time to talk to your family or a financial adviser about it. Having personal insurance means that you might be able to get pay-out if something bad happens to you. Just like you insure your car in case of an accident. Remember, you are more valuable than any vehicle so may sure you are insured.
Everyone’s situation is different, so it’s important to seek advice specific to your needs. Getting your financial life set up correctly will give you peace of mind as you find your feet in the workplace.
Principal Wealth Management Pty Ltd trading as BMO Financial Solutions ABN 53 109 336 601 is a Corporate Authorised Representative of McPherson & Associates Pty Ltd Australian Financial Services Licence (AFSL) 229883. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your particular investment objectives, financial situation and individual needs. McPherson & Associates Pty Ltd and its Authorised Representatives do not accept any liability for any errors or omissions of information supplied in this article.