DO THESE 5 THINGS NOW AND RETIRE 10 YEARS EARLIER

Running a household has its ups and downs so each week we bring you the latest tips and tricks to make your home life easy KICKSTART THE NEW YEAR BY TAKING STOCK OF YOUR FUTURE FINANCES WITH THESE EXPERT TIPS

Planning on retiring early? It’s a dream many of us hold. But is it really possible? There are ways you can help secure your financial future, according to experts. Here are some ideas that may help us get well on the way.

LOOK AT DIVERSIFYING

We all know that paying off your mortgage is a form of saving, and that we need to look at this before any extra expenditure, such as luxury holidays or excessive dining out. But if you have the mortgage under control, it pays to look at other investments too.

According to financial adviser, entrepreneur and author, Melissa Browne (melissabrowne.com.au), there’s an old adage that you can’t eat your house, so if all you’re doing is paying off your home and not building other assets, then strangely, you could ultimately find yourself in financial stress later in life.

“Instead, I’d be repaying my house as if interest rates were at 8 per cent and then once the loan was at a point where I could pay it off in under 15 years, I’d be looking to invest elsewhere as well,” says Melissa, who is an expert in helping people to understand that money isn’t good or evil but simply a tool we can use to help us design the life we love.

KEEP INVESTING IN YOUR OWN EDUCATION

Investing needn’t be just money-based. Melissa believes investing in your own education especially in this ever-changing market is a vital and sometimes forgotten type of investment.

“But I believe just as importantly, we should be developing multiple income streams away from our job so that if the worst was to happen, we’re not simply reliant on our wage,” she says.

“This moves us away from being a wage slave and gives us more freedom.”

LOSE THE CREDIT CARDS

That piece of plastic in your purse is so tempting to pull out, but we always have to remember that if you need to use a

credit card because you can’t pay for a purchase in that moment, that means you can’t afford it.

“I’m not a fan of credit cards,” says Melissa. “Research consistently tells us that we spend 10 per cent more when we use credit, so even if we’re paying our cards off in full each month, chances are we’re overspending.”

TOP UP YOUR SUPER

Have you checked your superannuation balance lately?

“Women particularly suffer from lower superannuation due to time out of work and lower paid work,” says Melissa. “I believe it’s incredibly important to top up your super where you can.”

And these days it’s easier than you think.

“The good news is there are now so many ways to do that, including Super Rewards and Fairvine, who both offer the ability to round up your spending to your super account,” says Melissa.

HAVE A BACKUP PLAN

You’ve put your early retirement plan into action and set an approximate date. Remember there could be some hurdles along the way.

One thing that you may not have considered is that you might not like the long unstructured days of retirement; you might actually miss the camaraderie of a work environment. Or the economy could go bad, taking some of your investments with it.

While it’s great to have a plan, it’s also important to enjoy the present, making sure you give yourself a few rewards along the way.