The choices we make have a big influence on our personal happiness and also on the wellbeing of those we love. They also have a financial impact too.
Sometimes we anticipate choices with a sense of excitement. And sometimes life throws us curve balls in the form of unexpected events and important decisions.
Perhaps you are thinking about a change in career or job role? Maybe you are about to take the plunge into the property market again, or choosing a school for your child/ren?
The investment of raising kids
The investment of raising kids is rising all the time, with one of the biggest investments being education. The cost of raising two children is estimated to be more than $1 million today for higher income families, thanks largely to the cost of private education. The simple act of choosing the right school for your child can involve competing priorities and trade-offs between lifestyle, career, income and family.
For example, families need to weigh up whether one partner will take time out of the workforce to care for children or work part-time, or whether both parents need to work full-time to afford the school of their choice.
Changing careers and work/life balance
Changing careers can also have a big impact on family life and finances. Will the short-term financial pain of switching to a job with a lower salary, re-training or starting a business lead to better long-term financial prospects?
And money is not the only issue. The decision to be your own boss or to work from home could also improve your work/life balance and make life less stressful for the entire family.
Sometimes what appears on the surface to be a purely financial decision can also involve complex trade-offs in other areas of life.
Property choices
Making the decision to buy your next property and upgrade, rent or buy an investment property may require a change of your set financial plan and structure or re-arrange your financial priorities in order to repay the mortgage as quickly as possible. The trade-off is the emotional security that comes from owning your own home and having it fully paid off by the time you retire.
Decisions, decisions
When we are faced with life choices it can be a challenge knowing what to consider and where to start, let alone implementing the change. So we’ve taken four common life events and outlined some things to think about and tips on how to get the help you need.
A successful life often comes down to the decisions we make – and don’t make – along the way.
Most people just muddle through and underestimate the change in the financial plan required, but the more effort you put into making the right decisions and create a comprehensive financial plan when it really counts, the better off you may be.
If you would like to devise a financial plan to guide you through the new directions in life, we can help.
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