PREPARING FOR THE TIME OF YOUR LIFE
BY LEANNE MCDONALD, DIRECTOR AND SENIOR FINANCIAL PLANNER OF CREATE FINANCIAL SOLUTIONS
The choices we make in life have a big influence on our personal happiness and also on the well-being of those we love. Perhaps you are thinking about a career change or how to achieve a better work/life balance? Maybe you are about to take the plunge into the property market, or choose a school for your child? Whatever choices are ahead of you, it’s better to be in the driver’s seat than just winging it. The cost of raising kids: The cost of raising two children is estimated to be more than $1 million today for higher income families, thanks largely to the cost of private education. The simple act of choosing the right school for your child can involve competing priorities and trade-offs between lifestyle, career, income and family. For example, families need to weigh up whether one partner will take time out of the workforce to care for children or work part-time, or whether both parents need to work full-time. If money is tight, would you be better off sending the kids to a public school and spending the money saved on extra-curricular activities and holidays? Changing careers and work/life balance: Changing careers can also have a big impact on family life and finances. Will the short-term financial pain of switching to a job with a lower salary, re-training or starting a business lead to better long-term financial
prospects? And money is not the only issue. The decision to be your own boss or to work from home could also improve your work/life balance and make life less stressful for the entire family.
Property choices: Take the decision to buy your first home or upgrade, rent or buy an investment property. Unless you have significant help from your family or an inheritance, you may need to cut back spending on clothes, travel or eating out in order to save a deposit. And it doesn’t stop there. Once you buy a property you may need to re-arrange your financial priorities in order to repay the mortgage quickly.