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Financial Planning for Low Income Earners – No, It’s Not a Myth

More than ever before, it’s crucial that we debunk the commonly held misconception that low-income earners needn’t seek financial planning and counsel.

The cost of living continues to surge, with the gap between the ‘rich’ and the ‘poor’ having steadily increased over the past three decades, Just this past week, it was announced that the student loan threshold would be clawed back as of July 1, from approx. $56,000 to $45,000 a year, leaving those with higher education debts out of pocket sooner than anticipated.

Further, in this year’s federal budget, Treasurer Scott Morrison promised tax cuts to working Australians for the 2018-2019 period – a political manoeuvre which initially appears progressive. However, the forecast for tax cuts from 2024-2025 shows a drastic trajectory for those in higher income brackets but an alarming plateau for those at the lower end.

These are just some of many indicative events of a fluctuating economic agenda as far as wealth disparity is concerned – if you’re a low-middle income earner it’s ever the battleground out there.

The Good News…

One of the biggest misconceptions around financial planning is that it’s reserved for the wealthy, or that you need to ‘have money’ in order to benefit from advice; this couldn’t be further from the truth.

In spite of the economy’s turbulence, reclaiming your financial empowerment, regardless of your bank balance, is entirely achievable and it is the job of a well-rounded financial planner to guide you through this.

Of course, there is a spectrum as far as the complexity of advice goes, but a large component of modern financial planning is designed to be accessible to everyone – from pensioners, to single parents, to avid investors.

What Does Financial Planning For Low Income Earners Look Like?

Financial planning can be that just – planning. It can be something as simple as evaluating your superannuation and ensuring you’re in a low-fee fund or getting advice on life cover or income protection.

For some people, it might be getting assistance to access the First Home Super Saver Scheme (FHSSS) to buy your first home.

For others, it might be about week-to-week budgeting, re-structuring finances, consolidating accounts, putting in place basic measures for improved debt management, or starting a regular savings or investment plan to re-focus your personal goals and objectives.

The key takeaway is that financial planning is absolutely for everybody – not just for the financially savvy, and certainly not just for the wealthy.

Should you require more information or clarity on any of these topics, please contact us today on 1300 354 355.

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The information contained on this website is general in nature and is no way intended to be legal, financial or investment advice. The information provided is not intended to be taken as, or relied upon as financial advice or providing recommendations in relation to any financial product. You should seek independent financial advice from a licenced financial services advisor to check how this information relates to you and your circumstances. Inovayt Pty Ltd and Inovayt Wealth Pty Ltd does not accept any liability for injury, loss or damage incurred by the use or reliance on the information provided on this website.

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