What’s your biggest asset? The answer may surprise you… It’s YOU!
If you are on an annual salary of $35,000, and you spend the same amount of time in the workforce as the average Australian male (around 43 years), you would have a lifetime earning capacity of $3 million, for a working couple that’s $6 million.
Source: Men Not at Work. An analysis of Men Outside the Labour Force, Productivity Commission, Australian Government, January 2007. Assuming their average salary increases each year by 3% due to CPI and other increases.
Your life as a family has started and there are many changes compared to when you were young and independent – the most obvious being more responsibility. You now don’t have just yourself to look after, but there’s also now a partner and small children as part of your mix. Your focus and priorities are different and you’re starting to think about and plan for the future.
You’ve probably bought a home and increased your debt. You really need to think about how your partner and children would cope financially if something unexpected happened to you and you were unable to work and provide for them.
With spare time and spare cash at a minimum, you may feel that you’re too busy and have better ways to spend your money, however, now more than ever before, is the time to create a financial plan to ensure your financial future is the best it can be!
Did you know?
More than one in five working age parents will die, become seriously injured, or ill enough to prevent them from working.
Source: Lifewise/National Centre for Social and Economic Modelling, 2010.