Financial Snapshot
Here, we’re going to build your specific financial snapshot. This will be different for everyone. I’ve provided a list of categories for you to go through and populate with the information that’s relevant to you.
These include things like age. Planning depends on where we are in our careers, how much time we have, and how long things like compound interest can work for us. Gender also has a significant impact: if you are a woman, you may need to double down to build a stable financial future. Due to childbearing and rearing, gender pay disparities and the types of jobs women are more likely to hold women are often at a disadvantage, earning anywhere from 30% to 40% less than men, which also affects superannuation. Even if you are male, it’s important to be aware of this—for your own consciousness and, if you have a female partner, to understand how your finances are interwoven with hers and how you can contribute to creating better financial equality.
Other factors include risk profile. Some people are willing to take bigger financial risks; others are more conservative. You need to work out where your comfort is.
Some aspects of your snapshot also come down to luck or circumstance. If you will inherit money in the future, grew up in a socio-economically advantaged area or had access to good education these factors provide a foundation to build on.
If you are to date disadvantaged this doesn’t mean you can’t work to right disparities if we start with awareness.
When you bring in a team to help build your financial plan, they need to know the reality of your situation to create structures that support long-term stability.
Consider:
- Do you have superannuation? How much?
- Do you own your own home?
- Are there health issues or injuries that affect your earning capacity?
- Are you a parent? How many dependants do you have?
There are many factors that influence your financial snapshot. Before we move on, let’s create a snapshot specific to you.
Your Snapshot
Using the list below, document your personal financial snapshot as it stands right now. Short notes are fine—the goal is clarity, not perfection.
- Age
- Children / dependants
- Housing
- Inheritances
- Luck (privilege, advantages, safety nets)
- Risk profile
- Gender
- Geography
- Education
- Current financial position
- Relationship status
- Lifestyle preferences
- Retirement plan
- Health and wellbeing (capacity to work)
- Industry
