Are you in this category? 35 years of age or younger having a good permanent employment with the whole world at your mercy? Then a word of caution if you fit this description – think first, plan carefully and implement slowly before embarking on decisions that will affect you for the rest of your life.
Meet “Jen” and “Mark” seen above taking a ‘selfie’ who are thinking of getting married and moving in with one another. They are looking at buying an apartment as they are far cheaper than houses. After all it is their first step on the property ladder. Forecasting into the future, the plan for the couple is to have children meaning that they might have out grown their apartment. In a lot of cases the question is, will they be able to offload this apartment? Where can they get the equity for the new purchase? And how they might not be able to afford the two mortgages? Even buying an apartment today for similar individuals does not guarantee the value – it may still depreciate.
So what should you consider before embarking on these decisions? Here is a guide to planning your finances in the right direction:
No matter what you position in your career we always strive to have the books balanced so that expenditure doesn’t exceed your income. There are two choices that then exist; earn more or cut costs. Robert Kiyosaki stated that “It’s not how much money you make but how hard it works for you, and how many generations you keep it for”.
It is absolutely essential therefore to plan your life and your finances.
Start off by making simple monthly budget this can start to determine the surplus, if any, for planning purposes. Spread sheets, budget word documents, there are many aids to help you. If any of this seems too daunting and/or time consuming, we at Alpha Wealth are always just one call away.
To streamline your budget and irrespective of whether you have a surplus or deficit, run through your expenditure and ask two questions
A. Do I need this item of expenditure?
B. Is there a better or cheaper alternative?
In five words let me give the final piece of advice to the under 35s… spend less and invest more.