Question of the Week: Inter-generational financial support

How best to deal with the worry of inter- generational issues…?

In my email last week, I posed the question of how best to prepare for your own future…

One client asked how they could help their (young) children – not yet born – because of their concerns about what the housing market would look like for them – and their ability to buy a house.

Another client asked how to help parents who had sold everything to live life on the road – but that life had caught up with them and the aged parents were now renting.

So… Question of the week involved worrying about generations – above and below you.

Interesting and very real worries, and I think both need to start in the same place…namely – do everything you can to make your own life financially secure so that you are in the best position to help the ones you love.

I think there are 5 bases you need to cover to help yourself – a hierarchy if you like;

1.     Know where your finances are – establish a budget of everything you spend. (My Expenses tool… Is a really good place to start) If you send that to me I will be able to help you refine your budget.

2.     Your income just MUST be more than your expenses – it MUST. Reality… earn more or spend less – but your life MUST MUST MUST run at a profit.

3.     Set yourself achievable savings goals – save your first $1000, then your second, then $10,000… a journey always begins with the first step.

4.     Buy your first home and then NEVER go back to renting again.

5.     Lastly, invest for the future – property or shares are the main areas – not the only ones but the main ones.

Establishing these for yourself puts you on a solid footing and then you are in the best possible position to help;

·      Your children in the future.

·      Parents if their plans go astray.

Future security starts with you.

Ask any question of me about anything… and once again, next week I will respond to the “Question of the Week”.

Ask Alan Heath, Mortgage Broker Brisbane CBD and Surrounds.

Looking out for YOUR best interests.