If the idea of waiting decades for mum and dad’s inheritance to fund your wealth creation sounds like a slow train to nowhere, you’re not alone.
With Australians living longer than ever (YAY Mum and Dad), relying on that future windfall may leave your financial goals stuck in the slow lane.
So, what should you do instead?
TAKE CONTROL
Build wealth on your own terms
Waiting on an inheritance is tempting, but the smarter move is to start building your financial future independently – today.
Here’s how:
- Develop a solid savings habit
Start by creating an emergency fund and building regular savings into your budget. It might sound basic, but the discipline of saving regularly, even small amounts, lays the foundation for future investing and financial resilience. - Invest early and consistently
Thanks to the power of compounding, starting to invest early can make a dramatic difference. Whether it’s shares, property or managed funds, consistently investing over time allows your money to grow and multiply, even if you start with modest amounts. - Maximise superannuation benefits
Super is a powerful Australian wealth building tool, designed to help fund your retirement, especially with government incentives such as co-contributions and tax advantages.
Things to consider:
• Salary sacrificing extra into super to boost retirement savings
• Seeking professional advice on your investment options within super
• Keeping track and optimising your super balance regularly - Educate yourself about money management
Seek out quality financial education to improve your money skills. Understand budgeting, debt management, investment basics and tax strategies. The better you understand your finances, the more confident and proactive you can be. - Seek professional advice early
Many people wait until windfalls arrive (or crises hit) to seek financial advice. Engaging a trusted financial planner or accountant early can help you design a personalised strategy that fits your goals, risk tolerance and timeline. - Explore additional income streams
Look for ways to diversify income, such as side businesses, freelancing or property investment. A multi stream income approach not only builds wealth but provides stability if one source falters. - Hold open family conversations about inheritance
While you shouldn’t bank on inheritance, discussing estate plans openly can prevent misunderstandings later, reduce family stress and help you make realistic plans for your own financial future.
CASE STUDY
Sarah’s journey to financial independence without inheritance
Sarah, 35, grew up expecting to inherit her parents’ family home one day. But seeing it might be decades away, she started focusing on her own savings and investments in her late 20s. By 35, she owned a rental property, had a diversified share portfolio and was topping up her super regularly.
Sarah’s parents are now in their early 80s, still healthy and living independently, and Sarah’s financial independence is firmly in place without waiting for a windfall.
THE BOTTOM LINE
Treat any inheritance as a bonus, not a plan
It’s wise to prepare in case an inheritance arrives. But the best strategy is to build your financial security on your own efforts and smart decisions today. Don’t let ‘mum and dad living longer’ stall your dreams. Take action now to create the wealth and security you want.
If you’re wondering how to get started or want help designing your personalised financial plan, seek advice from our team of qualified professionals sooner rather than later. Your future self will thank you.