Financial Planning For Salaried Employees
Self-employed workers have the freedom and independence to dictate how, when, and where they work, but that may also mean sacrificing aspects of their personal life for the sake of their business.
Working for the government, a company, or an organisation can provide you a sense of freedom from your work where you get to leave the hustle and bustle of work life where it belongs, at work. But working for a salary doesn’t mean you have to sacrifice your financial independence. In fact, your salaried job is actually one of your greatest assets on your wealth creation journey
Personal financial planning imparts you with a strategic roadmap for achieving your financial goals while avoiding monetary pitfalls. A robust financial plan can help a salaried employee pursue their financial independence and goals for the future, without having to sacrifice their freedom.
A strong financial plan is quintessential for the salaried employees among us. Make the most of your regular income to reach your future goals and turn your dream retirement into your living reality. The MyFuture team has worked with countless individuals to develop a detailed financial plan with proven strategies to see them through to retirement.
Financial Planning For Salaried Employees
When you receive a regular salary, whether it’s weekly, bi-weekly, monthly, or some other arrangement, you’re probably familiar with the brief exhilaration of financial security when you first get paid. But you’re probably equally familiar with that sinking feeling in your stomach when you’re trying to pay your bills by a deadline, but that payday is just a little too far away. Take solace; you’re not alone.
Most people approach important events in their lives with a concrete plan. If we decide to have a child, buy a house, change jobs, or even take a holiday in an exotic place, we are aware that we need to squirrel away a little bit of money every month to reach our goal. Financial planning is just like that, except your whole life is an important event! And when you have a plan in place, life just gets easier.
When you earn a salary and follow the strategies laid out in your financial plan from MyFuture, you can still enjoy that high of having money in the bank on payday, but getting from one paycheck to the next will never haunt you again. It’s like taking an antidepressant for your finances!
There’s a saying in financial planning, that whatever your financial goals are, with the right amount of planning and time, it’s possible. Most importantly, it can provide you with the financial security that eludes many people who work paycheck to paycheck. Whether you’ve got big plans or more modest ones, you’re just a phone call away from protecting the present, preparing for the future, and being ready to respond to whatever life throws at you.
Get Ahead With Quality Financial Advice
Our Qualified Financial Advisers can help you achieve your goals with a tailored financial plan and proven financial expertise.
What Is The Best Way To Create A Financial Plan For A Salaried Person?
Coming up with a financial plan that works for you is no big secret, but it’s not necessarily an easy task either. It starts with identifying your priorities, using those priorities to set goals, figuring out how much it will cost to reach those goals, then putting in place the right strategies to get you there.
Set your financial goals
Before you decide to save, take time to think about what your goals are for your savings. This is a good motivator to ensure you stick to your financial plan. It will also help you prioritise your monthly spending. Spending can be split up into:
- Long-term – more than 10 years ahead, i.e. retirement planning
- Medium term – what do you want to achieve in the next 5-10 years? Maybe you want to buy a house or set up your own business.
- Short term – what do you want to achieve within the next 5 years or less? Maybe you want to pay off your credit card debt, go on holiday, or get married.
Set a monthly budget
The important next step is to set a monthly budget, and save a little from your salary each month. Your regular income is a safety blanket that you can rely on while figuring out how much you will likely spend. A simple way to begin is to split your spending habits into three categories:
- Needs – for those basic and unavoidable necessities such as paying the rent and bills, buying food, and paying transport costs;
- Wants – for those little pleasures in life like eating out, luxury items, travelling, and socialising;
- Savings – for those all important future plans or as an emergency fallback.
Maybe you’ve heard of the 50/30/20 rule which can be followed as the basis of where to allocate your monthly spending. Generally, around 50% goes to our needs; work to limit your wants spending to 30%; and the remaining 20% can go into savings.
While this is a great place to start, it is really the bare minimum when it comes to financial planning. There are strategies you can use to optimise your spending and make your savings work for you so that your money earns more money both now and in the future. Our proven savings, investment, and wealth creation strategies at MyFuture will make your daydreaming of a daiquiri on a tropical beach into your reality.
Get in touch with us today for your FREE no obligation Discovery Session so our Qualified Financial Advisers can help you make the most of your salary.
What is our 6-Step Financial Advice Process?
The 6-step financial advice process is the international benchmark for financial planning. This holistic approach is proven to increase the likelihood of you achieving your financial goals.
Discovery Session
This is our opportunity to get to know you better, understand your financial goals (short, medium and long-term), and what resources you have to achieve those goals.
Research & Recommendations
During these steps, we do the research, run the numbers, document and present our recommendations to you. This can be a comprehensive financial plan focused on long-term wealth creation and/or a statement of advice focused on your more immediate financial needs. We will need to verify the information you provided during the Discovery Session by requesting supporting documents such as loan and savings account balances, payslips, etc. This ensures we are using highly accurate information when developing our recommendations.
Implementation
This step is all about implementing the recommendations. We don’t just provide the recommendation; we take responsibility for helping you implement it. This could involve helping you to complete application forms, working with a broker to restructure your lending, or finding you suitable investments. We understand you’re busy, so our goal is to make your financial world as easy as possible by doing as much as we can in-house for you. However, ultimately, we never have access to your money and cannot sign anything on your behalf, so you need to be an active, willing, and ideally enthusiastic participant in this process.
Ongoing Service & Reviews
This is where the real fun begins—managing and tracking your long-term financial success. We have periodic reviews to ensure your strategy is still appropriate if your goals or circumstances have changed. We adjust when necessary and provide annual snapshots so you can see your progress over time. Most importantly, you have your very own trusted Personal Financial Adviser available anytime to help with the little or big stuff. Worried about making next month’s mortgage repayments? Call us. Your parents gave you an early inheritance? Call us. Broke up with your partner and split all your assets? Call us! We’re here for you every step of the way to ensure that whatever life throws at you, you stay on track with your long-term financial goals.
Frequently Asked Questions