Once you land your dream FIFO gig, you then need to create a financial plan for your FIFO money. A financial plan provides clarity and reduces uncertainty around your finances. It can even give you direction and purpose in your life.
If you do not have a financial plan for your FIFO money, you can end up in a worse financial position. Do not spend your money carelessly thinking your FIFO gig will last forever. It might not!
Also read: Why Is Financial Planning Important?
Here are 5 top financial tips for FIFO workers:
- It is almost impossible to avoid some debt. However, there are bad debts and good debts. Generally, bad debt is not tax-deductible; while good debt, on the other hand, is tax-deductible.
- Do not fall into the trap of borrowing too much for purchasing lifestyle assets. They mostly depreciate in value. In addition, the interest is not tax-deductible.
- If you have commenced FIFO work it is likely that your salary will have increased and in turn your superannuation contributions. It is therefore vital that you are making the most of these contributions and they are going to an appropriate fund.
- If your super is invested wisely, it is in the best position to grow. It is, therefore, essential to talk to a financial adviser to ensure you have invested appropriately.
- A financial adviser can help you understand the superannuation fund and how you can make it work for you.
3. Investing surplus income
- There are a number of options of what to do with your surplus income, including paying down debt, superannuation contributions, or investing outside super. A Financial Planner can help you compare these different options and work out what is best for you.
- You can establish a regular savings plan and accumulate an investment over time and have something to show for the extra income you have been earning.
- It is much better to choose an investment you are comfortable investing in. A Financial Planner will help you invest in a portfolio that you are comfortable with.
4. Insurance cover
- It is very important to ensure that you have appropriate insurance cover to protect your most important asset, which is your ability to earn an income.
- Precept Financial Services specialize in finding comprehensive income protection policies for FIFO workers.
- These policies can be paid personally in which case they may be tax deductible or can be paid from superannuation if preferred.
5. Talk to a Financial Adviser
- A lot of people do not know their financial health. If you have just started working FIFO, you can now evaluate your financial health. It is essential to talk to a financial adviser.
- A financial adviser can help you know your financial health and set financial goals. Once you set your financial goals, your financial adviser can help you develop a plan for achieving your financial goals and can help you monitor your progress in achieving those goals.
- Precept are specialists in this area and have many years of experience helping fly in fly out workers in the mining and oil and gas industries.
FIFO workers earn good money. However, a lot of FIFO workers do not know how to plan their finances and end up just spending the extra money that they earn. A financial adviser can help you manage your finances and set achievable financial goals.
If you are a fly in fly out (FIFO) worker looking for a financial adviser, then contact Precept Financial Services to plan your financial future. We have advisers available in Perth, Kalgoorlie and Busselton or can work remotely with you.
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