A plan for financial independence

For many professionals in their early 40s, the idea of being financially independent before they are 60 sounds like a dream. School fees, mortgages, and lifestyle costs make it feel out of reach. But with strong incomes and a disciplined plan, financial independence is achievable.

Let’s look at how Bandit and Chilli can make it happen.

Bandit (42) earns $260,000 a year as an IT contractor, while Chilli (40) brings in $140,000. Together they earn $400,000. Their home is worth $1.4 million with a $400,000 mortgage. They’ve got $700,000 in super between them, and they have been putting $4,000 a month into their offset account which is a healthy $120,000. They could increase this to $10,000 if they made it a priority, but up until now they haven’t seen the need.

On paper they’re in great shape. Great cashflow. Nice house. A Super balance higher than the average for their age.

However, without a roadmap and a change in mindset, they risk drifting rather than building real wealth.

Why Mindset Matters

Most families think about money in terms of comfort today: keeping up with school fees, holidays, and the mortgage. That’s natural.

But financial independence requires thinking about the future. Bandit and Chilli make the following changes:

1. From spenders to builders. They stop thinking about what money buys now and start thinking about what that money can build for the future. It doesn’t mean they stop going on holidays or eating out, but it just means thinking about the future opportunities they are giving up.
2. From safety to growth. Offset accounts and mortgage repayments feel safe — but they won’t deliver wealth. At its most basic, putting money in the offset account will save you 5-6%, but investing in growth assets is likely to give you a return of 8-12%.

Mapping the Road Ahead

Step 1: Pay off the mortgage sensibly
At $400,000, the loan is manageable. Keep repayments going, but don’t let “being debt free” become the only goal.

Step 2: Invest with intent and be consistent
Invest $5,000 a month, every month.  An elite athlete doesn’t train occasionally. They train every day. Building wealth works the same way.

If you want to grow an investment portfolio to $1.3 million in 10-15 years, you will only get there if you invest consistently.

Step 3: Supercharge superannuation
Superannuation is nothing more than a tax haven and most people don’t make the most of it. Not only can you claim tax deductions for some contributions, the earnings are only taxed at 15%. Or better still, when you retire and transfer your super into pension phase, you can have $2 million that is tax free.

Yes, Governments will keep tinkering with it, but it is still far and away the best tax haven there is. Use it. You will thank yourself later.

The Bottom Line

Bandit and Chilli’s numbers stack up — but the real difference is how they now think about money.

Financial independence isn’t complicated. It starts with a choice: think differently, act consistently, and stay the course.

We specialise in helping professionals and executives grow and protect their wealth so they can live an abundant life. If you would like to discuss how you could benefit from independent financial advice, book a chat via the button below or contact us on 02 6269 3339 or at team@constructwealth.com.au.