In your 30s and 40s

Whether you're single or married, with or without kids, have a mortgage or not, it's quite common at this stage of life to feel pressure on your finances.

You - and your partner - may be well-established in your career and might even be doing further study. But over the years you may have accumulated responsibilities which require money. You might want to renovate your home, pay for your children's education, enjoy an amazing holiday or build your investment portfolio. Or you may simply be wondering how you can better organise your finances so you have more freedom to choose.

1. Pay off 'bad' debt -fast track credit card and personal loan repayments

These sorts of loans can be a drain on your finances, creating an obstacle to building your wealth. You could achieve significant savings on interest payments by paying off credit card balances on time and by avoiding personal debt or fast tracking repayments.

2. Consider consolidating debts and super accounts

As well as making your finances easier to keep track of and manage, you may save on fees and charges.
Super could be your biggest asset ever, worth maybe even more than your home - so get interested in your super.

3. Invest regularly and reinvest earnings

Even though you might feel like there are relentless demands on your finances it's important to put aside something each pay day for any specific targets you have such as education, a dream holiday or renovations, or in case something unexpected happens.

4. Get financial advice on borrowing to invest

To help accelerate your wealth creation, consider borrowing to invest, also called gearing. Gearing can allow you to access investments now that you wouldn't otherwise have the money to access. It can also give you the potential to spread money across different investment types, which can help to reduce risk.
With a larger investment you have the potential to magnify your returns, but gearing can also magnify your losses.

5. Take out adequate insurance

In your 30s and 40s you might feel a little invincible and be so caught up with life that you don't want to think about death, sickness or injury. But how would you and your loved ones cope financially if something were to happen? Planning for the unexpected now could save a lot of potential financial pain and pressure. It may be especially important if you have dependants or debts.

6. Be smart with super

Retirement might be the last thing on your mind but there are simple things you can do now that could make a big difference to how much you build in superannuation assets.

7. Estate Planning

Among other things, estate planning involves having a strategy so that in the event of your death, the distribution of your assets is managed as you intended. This is generally achieved through a Will.