Achieving your long-term financial goals doesn’t have to be overwhelming. By putting some basic financial steps in place, you can set yourself on the road to success. The start of the year is the perfect time to take proactive steps that your future self will thank you for.
“Building your future starts with small, consistent actions today,” says Daniel Grusd, Director & Senior Financial Adviser at Onelife Financial. “These steps may seem small now, but they create a strong foundation for achieving your financial goals.”
Building your nest egg
Adding to your superannuation is one of the most powerful and tax-effective ways to build wealth over the long term. Consider salary sacrificing to add to the contributions your employer already makes. Even small, regular amounts can grow significantly over time. Don’t forget that there are some limits on how much you can invest before tax is affected, so it’s a good idea to keep track of any before-tax, or concessional, contributions.i
Small business owners, sometimes struggling with cash flow issues, may be tempted to neglect their own super contributions but you risk missing out on the benefits later in life.
Reducing expenses and eliminating debt—like paying off your mortgage faster—are other ways to achieve financial security. While cost-of-living pressures can make these goals challenging, every small step counts.
Preparing for the unexpected
In addition to building wealth and reducing debt, protecting yourself against unexpected losses is critical. Adequate insurance for your home, business premises, and belongings can save you from significant financial hardship.
Common reasons for underinsurance include underestimating costs, forgetting to update policies after renovations, and failing to account for all assets. Reviewing your coverage regularly can ensure you’re fully protected.
“Preparedness isn’t just about avoiding risks; it’s about securing your peace of mind,” Daniel notes. “When you know you’re covered for the unexpected, you can focus on building your dreams without unnecessary worry.”
As natural catastrophes increase in frequency and intensity so does the ‘protection gap’, the economic losses caused by underinsurance or no insurance. One study estimated these losses in Australia at more than $18 billion in the nine years to 2023.ii
The Insurance Council of Australia (ICA) says there are some common reasons for underinsurance.iii
- Making an incorrect guess about how much it would cost to repair, rebuild or replace property and contents. The ICA suggests using a building insurance calculator and a contents insurance calculator. Most insurers include both types of calculators on their websites.
- Forgetting to update your insurance after upgrades to your home and belongings. Renovations, new furniture, and upgraded appliances can all add to the value of your home. It’s a good idea to reconsider the value of replacement at least every time you renew your policy.
- Adding the extra costs such as demolition, clean-up, asbestos removal, council applications, architect, and surveyor services, and even the cost of temporary accommodation during a rebuild.
- Not accounting for all your assets – you probably own a lot more than you realise. Have you included the contents of your garden shed and you wardrobe?
Financial protection for personal events
A surprising number of Australians lack adequate personal insurance. While 80% have car insurance, only one-third have life insurance.iv Life insurance is a valuable protection for your family if something happens to you. There is also income protection insurance and various other personal insurances that can ensure you continue to receive an income when you’re unable to work.
Cost-of-living pressures may make these protections seem like a luxury, but they are essential to achieving financial security and ensuring you can continue to provide for yourself and your loved ones.
Let’s Build Your Future Together
At Onelife Financial, we’re here to help you review your wealth-building and risk strategies. Together, we can create a financially safer 2025 and beyond. Let’s take the steps today to ensure your future is everything you dream of—and more. Book a chat with the team here.📅
i Concessional contributions cap | Australian Tax Office
ii Insurance Catastrophe Resilience Report | Insurance Council of Australia
iii The risk of underinsurance | Insurance Council of Australia
iv Financial security takes back seat exposing advice crisis | CALI
