In this case study, we’ll share how a recent Apex Advice client went from debt to home ownership in 24 months. The client is in her mid-30s, single with good income ($120k) but $0 in savings (in fact, the client had $70,333 in debt) and assets worth about $12,000 in shares.
The client wanted to learn how to improve her savings and money management, and didn’t know much about tax minimisation or investing. She found herself with little left over from pay to pay and struggled with bill shock. Like many Australians, our client faced lots of consumption debts such as credit card and personal loans, as well as Afterpay – to the point where she was unsure anymore what charge was for what purchase. Due to shift work and lifestyle, the client was also time poor.
The first step we took was to put a clear strategy and some structure in place. We created a roadmap to help keep everyone accountable, and provided some education on how to get the most out of money, including what to do with the clients shares and superannuation. Our plan included how to get rid of the consumption debts, with the main objective of home ownership ASAP. And, most importantly, we made sure to allow for some balance, so the client could still enjoy travel and gym memberships. Our steps included:
The client was happy with a clear framework for day-to-day money management. She started saving over 30% of her income and was able to fast track her path to home ownership. After 12 months, the client celebrated being debt-free. After 24 months, she was able to purchase her first home (and pulled the trigger on the decision with confidence). Now, with our first two goals well and truly ticked off the list, we’ve restructured the client’s retirement savings in line with her needs, and turn our eyes to the next big goal. What will that be? We’ll see, and for right now we’re happy that our client feels like the sky is the limit!
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Please remember that the information above is provided as general advice only. The contents have been prepared without taking into account your personal objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.