HG ADVICE
194 | AUSTRALIAN HOUSE & GARDEN
Some smart planning now can help protect your
financial wellbeing into the future.GREAT
EXPECTATIONS
P
lanning ahead always pays off,
especially when it comes to your
finances. Securing your financial
future will help you achieve long-term
goals and can play a role in reducing
overall financial stress, says Laura
Baker, senior financial planner for
Commonwealth Financial Planning.
Baker suggests a three-pronged
approach. “Look at your ‘everyday’
finances – how well you’re meeting your
immediate needs and bills; ‘rainy day’
finances – how prepared you are to deal
with unexpected events such as job loss,
illness or changes to relationships;
and ‘one day’ finances for achieving
long-term goals such as buying a home
or having a comfortable retirement.”See your savings
A simple way to start saving for the
future is to set up a dedicated savings
account. “Keeping savings and everyday
transaction accounts separate allows
you to easily see your balance and track
your progress. It also means you’re less
likely to dip into your savings to cover
everyday expenses,” says Baker. The
best way to establish a savings habit is
to set clear goals. A picture can provide
great motivation.Invest wisely
Investments generally fall into four
asset classes: cash, fixed-interest,
property and shares. “Most asset
classes can be used for short- or
long-term investing, depending on the
outcome you’re after,” says Baker.
Property is a popular investment
option. According to the Commonwealth
Bank’s Home Own research, 15 per cent
of Australians plan to buy an investment
property in the next two years. “Property
is a long-term commitment, so it’s
important to do due diligence. Considerthe benefits and risks before signing
anything,” says Baker.
If you’re thinking of investing in
a property with a partner or spouse,
research the benefits and risks
associated with joint loans. It’s
important to be aware that both parties
can be held responsible for the full
amount of the loan in the event that
one person is unable to pay.Retain your independence
It’s crucial to maintain financial
independence regardless of your
circumstances. “That means having
your own bank accounts, never sharing
PINs or passwords, and ensuring you
can manage any debts in your name.
Also ensure you can access a ‘rainy-day
fund’ so you can deal with unexpected
events that have financial implications.”
Couples should discuss joint
financial goals. In a healthy financial
relationship, financial decisions and
responsibilities are shared, there is
transparency, and both partners have
an equal voice, adds Baker.
“Sometimes financial relationships
can turn into something sinister.
Domestic and family abuse is an
urgent and widespread problem, but
not everyone knows that domestic
abuse is closely tied to financial abuse- when one partner uses money as
a means to control or exploit their
partner by limiting financial
independence.” The best defence is
to be aware of the warning signs and
stay vigilant, adds Baker. #
For more information on the warning
signs of financial abuse, go to
commbank.com.au/financialabuse.
To help improve your financial wellbeing, please visit financiallyfitfemales.com.au. Always consider your
personal circumstances before acting on financial advice.When it comes to managing
money as a couple, ensure you
take the time to discuss joint
financial goals.