see also:

• superannuation

• unfortunately the Rudd government changed its superannuation laws to DISCOURAGE you from investing in super.
• if you are under 50 years, the cap on concessional superannuation contributions is now only $25,000 per annum inclusive of compulsory 9% employer contributions which severely limits your capacity to salary package superannuation.
• you are thus very limited in what you can do with your superannuation, although if you have managed to save enough (eg. > $200,000) into your super fund over the years, then you should consider setting up a self-managed super fund (SMSF) - see your accountant about this.
• don't under-estimate how much private education is going to cost you for all your children!
• try to make some sort of financial plan early.

• generally, your first priority should be to aim to pay off any and all loans you have which charge interest which is not tax deductable - eg. personal home mortgage, loans for non-income-producing real estate such as land, car loans, credit cards, etc.

• the more you spend money, the harder you will have to work, and the less you will have to pay off your loans.
• don't let money rule your world - life is too short, enjoy it while you can without being excessive - spending makes you a slave to society - you don't really have to have the latest in fashion and gadgets, and having them won't usually make you happy in the long term, and set an example for your children who will be under enormous peer group pressure to comply with excessive spending habits.
• don't be a miser, be generous to others in need, but just don't waste your money on things you don't really need
• make the most of salary packaging for public hospital employees to reduce your expenses on meals and holiday accommodation, and if it is worthwhile, consider leasing a car through it (generally need to travel > 15,000km per year for this to break even though).
• ensure you tax deduct what you are allowed to tax deduct

• ensure your concessional super contributions are at the maximum allowable ($25,000pa)
• do NOT invest just to get a tax deduction or just on your emotions - it has to make financial and life style sense to you without stressing your cash flows.
• invest to give yourself a good chance of capital growth in the long term
• avoid silly high risk investments such as share trading unless it is with a small portion of your assets which you deem fit for gambling with for fun.
• avoid hedge funds and margin lending schemes as these will generally force you to sell down your investment at the worst times during a stockmarket downturn - ability to hold onto your investment will generally give you much better returns as markets generally recover well within a year or two.
• ensure you have adequate disability and life insurance to cover such investments for peace of mind - you do not want to be forced to sell an investment at a loss just because suddenly you can't cover the interest repayments through unexpected disability.
• watch out for sharks - there are MANY people keen to make a dollar from gullible, busy high earning professionals who don't take the time to understand what they are investing in.