Life’s journey - Where are you in your work life
Life’s journey - Where are you in your work life
Claire Steyn, CFP® - Financial Planner, BDO Wealth, Pretoria
The first job you hold is the start of your financial journey but, like me, you might have explored a few different roles before you decided what the right job was for you.
Often, we start from as young as two dreaming about how we want to make a difference in the world, what is important to us, and what makes us feel good.
I remember when I was young, one of the first roles that I experimented with was that of a doctor. This appealed to me as helping my ‘patients’, AKA my friends, feel better filled my cup as I felt I was making a difference in their lives by helping them look after their health and feel better.
The second role I experimented with was a teacher, helping make sense of things for my friends led to their growth in knowledge and confidence in themselves; it felt so good to give back.
Being a mom was the third role I experimented with at a young age. Guiding, caring for, supporting and loving someone else is a big responsibility, but so rewarding.
The list of roles I experimented with is endless, but these three are the ones that I can vividly remember. In choosing to become a financial guide I incorporated my three most important childhood career experiments into my dream job.
“Your journey is unique. No matter where you are in life at the moment, your work shapes both your career and your financial future.”
When seeing your financial planner for the first time, several emotions can come up as they ask questions about your finances – like what your goals are, what’s important to you, if you have a budget, what bills you need pay, how much you earn or what debt you are paying off.
You might feel anything from stress to shame, guilt, fear, happiness, excitement, or relief! The range of emotions you will feel will depend on what you are currently facing in your life, business, career or family.
Now, let’s explore the key work-life money moments and how a financial planner can assist during each phase, along with some tips and tricks to make the most of them.
1. Starting a Job
How a Financial Planner Helps:
A financial planner can help you understand your compensation package, including salary, bonuses, and benefits like health insurance and retirement plans. They can work with you to set up a budget that aligns with your new income and goals.
- Review your payslip and benefits thoroughly.
- Create an emergency fund of 3-6 months’ worth of living expenses.
- Start contributing to your company’s retirement plan as early as possible.
2. Salary Negotiations
How a Financial Planner Helps:
Negotiating your salary can be intimidating, but a financial planner can help you understand your worth and give advice on how to approach negotiations effectively. They can also help you manage your increased income wisely.
- Research industry salary standards for your role and experience.
- Highlight your accomplishments and contributions during negotiations. Once you get a raise, increase your savings or investments proportionately.
3. Promotions
How a Financial Planner Helps:
With a promotion often comes a pay raise. A financial planner can guide you on how to allocate this additional income, whether it’s towards paying off debt, increasing retirement contributions, or investing.
- Avoid lifestyle inflation; keep your expenses in check despite the raise.
- Maximise contributions to tax-advantaged accounts like a tax free savings account or retirement fund.
- Think about diversifying your investment portfolio.
4. Retirement Planning
How a Financial Planner Helps:
Retirement planning is one of the most critical financial practices. A financial planner can help you calculate how much you’ll need for retirement and develop a savings strategy. They’ll also guide you through investment choices, tax strategies and withdrawal planning.
- Start saving for retirement as early as possible; compound interest is powerful.
- Diversify your retirement investments to balance risk and return
5. Unexpected Expenses
How a Financial Planner Helps:
Unexpected expenses can derail your financial plans if you’re not prepared. A financial planner can help you build and maintain an emergency fund and provide strategies for managing debt if a crisis occurs.
- Set aside a portion of your income regularly for emergencies.
- Avoid using credit cards for unexpected expenses if possible.
- Review your insurance policies to ensure adequate coverage.
6. Investing
How a Financial Planner Helps:
Investing can be complex, but a financial planner can help you create an investment strategy that aligns with your risk tolerance and financial goals. They’ll also guide you through market fluctuations and help you stay focused on long-term growth.
- Start investing as soon as you can, even if it’s a small amount.
- Diversify your investments across asset classes (stocks, bonds, property).
- Review your investment portfolio regularly and rebalance if necessary.
7. Career Changes
How a Financial Planner Helps:
A career change can mean a change in income, benefits and financial goals. A financial planner can help you assess the financial implications of a career transition and plan accordingly.
- If you’re changing jobs, make sure you understand your new benefits package and how it compares to your old one.
- Roll over retirement accounts to avoid penalties.
- Create a financial buffer if you expect a period without income during the transition.
8. Work-Life Balance Adjustments
How a Financial Planner Helps:
Sometimes, prioritising work-life balance means making financial trade-offs, like reducing work hours or taking a less stressful (but lower-paying) job. A financial planner can help you navigate these decisions without sacrificing long-term financial security.
- Reevaluate your budget to reflect any changes in income.
- Adjust your financial goals if necessary but don’t lose sight of long-term priorities.
- Think about side hustles or passive income streams if you need additional income without taking on more work hours.
Each of these moments requires planning and can lead to financial growth or challenges, depending on the decision you make.
A financial planner provides the expertise, structure, and personalised advice needed to make the best financial decisions at each stage of your career. With their guidance, you can confidently tackle each of these pivotal moments, ensuring a more secure and prosperous financial future.
Whether you’re just starting out or are well into your career, it’s never too early or too late to seek professional financial advice.