Case study: settting long-term financial goals

Find out how Emily planned for her future by setting long-term financial goals.

Emily, 32, is at a turning point in her career and in need of direction after a break-up. Here’s how Emily consolidated her debts and started to plan for a healthy and independent financial future. 

Making the most of a difficult time

Break-ups are never fun, but they often provide the opportunity for personal growth. For Emily, a break-up was the impetus to get herself on track financially, first by eliminating her debts and then by setting savings goals. After meeting with a licensed financial adviser, Emily walked away with a clear plan and the financial strategies to achieve her long-term goals. 

Reduce debts first

Emily’s first action — get rid of her debts. Paying off a $3,500 credit card debt allowed her to put more money towards her car loan. In doing so, she managed to reduce the term of the loan from three years to 12 months, saving her a considerable amount of interest in the process. Emily also created a budget to help her get debt-free faster, which helped her to find additional funds to further knock down the loan.

Start saving, slowly and steadily

Given Emily’s specific goals and circumstances, her licensed financial adviser recommended she consider: 

  • Focusing on her company’s salary-sacrificing scheme to top up her superannuation with pre-tax contributions. The projections showed the impact on her take-home income was minimal, but because she is just 32, there was a significant difference to her super over the longer term.  
  • Saving as much as she could towards a home deposit over a two- to three-year period. Emily’s Active Saver account paid a bonus if she left the money untouched, giving her a further incentive to lock it away. 
  • Once she has bought a home, start investing to add flexibility and diversity to her wealth-building activities.

A young woman on a balcony looking at a tablet

Focusing on the long-term

Wherever you are in life, getting financial advice is a good option. For Emily, it allowed her to focus her attention on her long-term financial goals and put practical and methodical steps in place to get there.

Tips for setting yourself up financially for the long term 

Like Emily, you might be at a turning point in life, or you may just want to get ahead financially. Below are some tips to help you on your journey.

Important information

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