Adulting with Money

Many of us become inherently anxious when it comes to money.

And rightfully so - it’s more serious than politics, more awkward than first date conversations and more real than our favourite reality TV show.

You’re not alone in feeling this way. A national survey commissioned by ME bank revealed Australians are unwilling to talk about personal finances more than any other topic, including career, religion, politics, and even death. The survey also reported that 63% of Australians worry about their finances and up to 16% won’t share their financial situation with their partner.

We’re never taught in school the foundations of money. So, when we step into the real world, we’re forced to navigate an entirely unfamiliar landscape. Often it takes many years before we can muster the courage to consider our financial circumstance, let alone start to do anything about it!

But fear not! Whatever age you are, whatever financial situation you’re in, I’m providing you with a list of money basics to put in place. Just like you can’t build a house without foundations, you can’t build wealth without these basics.

What are money foundations?

1. A Budget

You may be surprised to find just how much financial leakage you’ve allowed in the absence of a budget. Budgeting makes you less likely to fall prey to impulse spending and helps you to create clear savings goals. We’ve included some handy budgeting tools that you can use here.

2. A Will

Consider all the important assets in your life. Make a list of your valuables and to whom you want to pass them onto — be it your car, property, jewels, clothes, sentimental possessions like photographs, etc. Do you have any specific funeral wishes? Who would you like to have guardianship of your children? The list goes on.

A will is not only important to honour your wishes, it’s also important for your loved ones. You’ll save a lot of heartache and tension if you make all these wishes clear. Still need some convincing?

3. Financial and Medical Powers of Attorney

Being prepared for a rainy day never hurts. A POA can be a close friend or a family member who is responsible for making legal and financial decisions on your behalf. Ensure it’s someone you trust, and someone who knows your values and your wishes.

4. Superannuation

Many of us fail to understand exactly what our super can do for us. Superannuation can provide a whole lot of benefits, but most importantly it’s your retirement fund from years of workforce contributions to support you when you finally decide to give up work.

Did you know that there’s an estimated $18 billion worth of lost super in Australia? Many people don’t realise they have multiple super accounts from multiple jobs, hence may leave thousands of dollars’ worth of unclaimed super. It’s easy to consolidate your accounts, and certainly worthwhile even if you don’t find much. Every cent counts!

5. Insurance

The pillars of insurance you need to secure are life insurance, income protection, Trauma and PTD and of course the very basics of Health and ambulance insurance. If you are a business owner then there’s Professional Indemnity and keyman business insurance to consider.

How do you know what insurance is relevant to you? Get in touch with us and we’ll help you!

The crux of the matter is that adulting with your money requires putting the above basic foundations in place. The above form a basic foundation/platform from which one can venture further into the grown-up world of investing and making your money work for you.