Your lifestyle and financial security: are they protected today and for your future?

Meeting with new clients is always an interesting experience.

Getting to know new people and their situation is arguably the most important step of the financial planning process. It’s during this time that a financial planner develops an intimate understanding that goes far beyond the clients’ financial situation. For instance, a person’s needs, concerns, personal experiences, influences and values will determine what advice is needed as much as their financial situation and objectives.

Part of the initial ‘getting to know you’ process with a new client is a discussion around what aspects are most important to them. A range of things stem from this discussion but in most cases there are two areas of importance that come up again and again: 1) current lifestyle, and 2) financial security.

Financial security is straight-forward enough. Most people realise they need to grow their asset base to a sufficient level while working so they can draw a level of income to support their desired lifestyle once they stop working. This is often a catalyst for seeking financial advice. Understandably, financial security is important to most people, most of us don’t want to work forever.

Lifestyle is often more tricky. For most people, it’s a double-edged sword. They want to enjoy themselves now while they are younger and can afford to do so, but not at the expense of financial security later on. This mindset creates a dilemma for most people because maintaining lifestyle and planning for financial security each require a financial commitment, and committing to one will often be at the expense of the other. It’s very much a ‘you can’t have your cake and eat it too’ scenario. The solution is often a compromise between enjoying yourself within reason today and putting funds away for tomorrow.

Whilst your current lifestyle and future financial security are at odds with one another, they have one thing in common – they both require money. Whether you take an overseas trip or salary sacrifice to superannuation, both cost money. Consider it another way, if you didn’t have money you wouldn’t be able to do two of the most important things in your life.

Therefore, money is critically important and is one of your greatest assets. You rely on it today and will rely on it in the future. So what would happen if you didn’t have money anymore? Do you have protection in place to stop this from happening?

Think about your other valuable assets (house, car etc), do you have these protected? Chances are you do. But would you have these assets if you didn’t have money? Probably not. So is your money protected? For most people, probably not. Is your money worth protecting? Absolutely.

Protecting your money will protect two of the most important things in your life – your lifestyle today and your financial security tomorrow.

To find out more about how you should protect your money, speak to an expert.


This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial and tax advice prior to acting on this information.Opinions constitute our judgement at the time of issue and are subject to change. Financial Planning Expert Pty Ltd does not give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document.
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    Financial Planning Expert is an independent financial planning business based in Melbourne. We provide genuinely independent and conflict free financial advice. We’re experts in self-managed superannuation fund (SMSFs) advice and strategy, retirement planning, property and share investment advice, life and income protection insurance, tax planning, asset protection, estate planning and advice for Australian expatriates.