I’m in control of my life and future

Money reader Sara Gagliardi discovered that it’s never too late to put an effective financial plan in place

My financial literacy journey began in my 40s when I decided to put what I was hearing about super to the test. I was cynical and sceptical – people around me had had poor experiences with their super funds – but nevertheless I decided to gamble with money I didn’t have access to until retirement by changing from the default balanced plan to growth.

I’ve always worked in the frontline service industry – hospitality and currently sport and recreation. I had finished an 18-month stint in fly in, fly out work (tourism), which had paid the most I’d ever earned, and was transitioning to part-time work.

It was time to build financial security for my future. With limited knowledge of superannuation, other than it was compulsory and not accessible until preservation age, I started learning by doing – salary sacrificing, changing the default plan to growth and checking my balance regularly – to see what it was all about.

For 10 years I contributed, checking the balance every week. I salary sacrificed, increasing my amounts over the years. This is how I came to understand the power of investing and compounding.

Growing up in a household that only understood working and saving taught me good habits but was limiting. My mum carried the household with a casual job while my dad worked intermittently.

I was raised with a strong work ethic and became a great saver and a conscientious spender. Financial insecurity has underpinned my exposure to money, so risk was always poorly understood.

One day a good friend introduced me to a broker at a local investment firm.

I had $150,000.00 in savings earning very little interest. After I filled out a risk profile, my money was invested. It was the scariest day of my life when I transferred my entire savings to a cash account. I was paranoid I’d return to the offices of the multi-storey building only to find them empty, having been duped by a sophisticated scam. But I had done my due diligence and felt that I was prepared enough to make an informed decision. I’m happy to say it was legitimate.

My investments reflected my conservative profile, contrary to my super fund plan, and my blue-chip investments have done way better than the banks.

Reading books, magazines and newspaper articles helped refine my understanding, but it was an online investing course with InvestSMART that gave me the confidence to open an account and make my first online investment – it was inexpensive and gave a good grounding on the basics of investing. There is a lot of free stuff out there but, frankly, I found it overwhelming.

I live with my mum, sharing living expenses, and have a very frugal mindset. The things I enjoy cost me time and energy so I can save most of my pay. My attitude to spending leaves me with a higher disposable income than some people on a six-figure salary.

I don’t want to rely on the pension. I feel good when I know I have my own financial safety net. Now that I have a plan, I’m more in control of my life and future. It’s no guarantee, but even a bad plan is better than no plan.

‘ “It’s no guarantee, but even a bad plan is better than no plan”