If you’re new to the mining and resources industry, coming from a different field of employment into a new job can create some very big changes in your life. FIFO workers especially make some very big sacrifices when it comes to both family and day-today normalities, however the financial rewards are very worthwhile at the end of the day. These sacrifices and changes can create issues, especially when family is involved, however it can also solve a lot of problems when it comes to finances. So, there is the need for balance when it comes to FIFO roles that can not usually be found without at least some guidance.
To start heading in the right direction with your finances, you need to take a practical approach to it, and make it simple and effective enough that you won’t need to think too much about it on your downtime, leaving you more time to spend with family and friends when you are home. The only real ways to start a new list of financial goals, is by evaluating where you are at now, and re-evaluating your goals of where you want to be within 1 year, 5 years and 10 years.
Evaluate your current financial situation
When you are assessing your current financial situation, it can be difficult to know where you stand, and how your situation might compare to other people’s. To get a better idea you should take a look at the simple financial questions below.
How does your debt compare to your current income?
Take into consideration the current balance, how much interest is involved, and how much you need to be paying based on your pay cycle. Calculate your pay-cycle debt-to-income ratio. You can do this by dividing the money you owe by the money you make. Find the happy medium, pay off your debts, and use that money for savings or investments.
Do you have emergency savings? Is it enough to cover an emergency?
If you can’t answer that, follow this rule. Your emergency savings should be able to cover at least 3-6 months of expenses. If it doesn’t, start working towards that goal.
Are you on track with your super contributions and other retirement options like bonds/stock/investments?
To evaluate your financial success check to see how your current balance looks in comparison of where you want to be by the time you retire. If you don’t know what you should have by the time you retire, the basic “living comfortable retirement” amount sits at around $550,000-$650,000. If you look towards that goal, it will help you to get on track.
Do you regularly add to your personal savings?
This savings account is for buying cars, a house, doing renovations, paying for holidays and things you want, rather than need. Emergency and retirement savings do of course address emergency and long-term future needs, but it is also important to set goals for yourself as short-term rewards for your hard work. Personal savings accounts are perfect for this.
If you seem to be on track with your financial situation you might want to keep your positive momentum and begin to take some calculated risks in the form of investments. Some of your personal savings can be used for investments like cryptocurrencies, the stock exchange or Foreign Exchange Trading. It is very important that you get the best possible advice you can, so take some courses in your time off, to learn how to begin your investment journey.
Once you have all your financial ducks in a row, you can start to have a bit of fun with it, and eventually you might even be so happy with your investments that you no longer need to work FIFO again.