Like many other young families, you’re working hard and earning great money, but saving feels like an uphill battle.

You know you need to be planning for the future, but (despite your income) you can barely keep your head above water when it comes to expenses. The spending just seems to keep increasing: mortgage, vehicle leases, personal loans, credit cards, school fees, daily expenses for a growing family, leisure activities and the occasional holiday.

If competing priorities are preventing you from getting ahead financially, it might be time to seek help. You may be surprised what a difference it can make to your financial health and your stress levels.

Australian household debt has tripled over the last 25 years, growing at an annual rate of 10.3%. Household debt now equates to over $2 trillion [1]. This level of debt means households are living with debt which is 1.5 years of income compared to debt equalling half of annual income in 1990 [2].

While you may be comfortable living with higher levels of debt, it’s vital to balance this debt with preparing for the unexpected and planning to be able to live the lifestyle of your choice in retirement.

If you are not prepared, the loss of a job due to illness or injury, an increase in interest rates, or even the breakdown in a relationship could result in a situation where you start living beyond your means and face the further escalation of debt.

Your debt position can have an enormous impact on your financial and general well-being. Seeking professional advice can help you reduce your debt quickly and efficiently. In fact, a debt management plan is as important as a wealth creation strategy when it comes to preparing for your financial future, and may include recommendations such as:

Understanding your expenses: A review of your expenses and earnings to investigate essential and non-essential expenses and investigating strategies to address your immediate cash flow needs.
Prioritising debts: Helping you prioritise debts according to interest payable or using other strategies to address issues of liquidity, such as the use of offset accounts or re-drawing facilities.
Assisting your financial decision making: Using real life scenarios such as amending loan repayments to highlight the positive impacts of debt management over the long term.
Protecting your income: Identifying strategies to protect your lifestyle and plan for the unexpected, both now and in the future, through personal insurances.
Working with aligned professionals: Collaborating with other aligned professionals, such as your accountant, to identify tax efficiencies and consider the tax effective structure of debt which is compatible with your circumstances and overall financial plan.

If you would like to get your debt under control, we can offer leadership and financial mentoring to help you make the most appropriate financial decisions for your current circumstances and financial goals.

Contact us today if you would like advice on how to better manage your debts and work towards achieving your financial goals. Phone 07 3720 1299 or email admin@wealthfundamentals.com.au

[1] BankWest Curtin Economics Centre – Household Savings and Debt in Australia Report – June 2015 (p iv & 12)
[2] BankWest Curtin Economics Centre – Household Savings and Debt in Australia Report – June 2015 (p 12)

Lane Moses Pty Ltd ABN 56 092 186 117 trading as Wealth Fundamentals and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.

The information (including taxation) contained within this document does not consider your personal circumstances and is of a general nature only - unless otherwise stated. Wealth Fundamentals strongly suggests that you should not act on it without first obtaining professional advice specific to your circumstances. This information is based upon our understanding of legislation at the time of writing. Such legislation may be subject to change.

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