Why Structure is Just as Important as Strategy
When it comes to building wealth, most people focus on the what — property, business, shares. But just as important is the how — how you set up, fund, and manage your finances along the way.
Financial structure refers to how your income, assets, loans, and liabilities are organised — and whether they support or limit your future plans.
What is Financial Structuring?
It’s the process of aligning your finances with your goals. This can involve:
- Choosing between fixed vs. variable loans
- Deciding whether to borrow personally or via an entity (e.g. trust or SMSF)
- Managing risk across different income streams or investments
- Ensuring enough liquidity (access to cash) for emergencies or opportunities
How the Right Structure Can Help
A well-planned financial structure can help you:
- Free up cash flow
- Reduce unnecessary fees or taxes
- Make your loans work harder for you
- Prepare for future borrowing needs
- Keep your options open as life changes
Common Triggers for Restructuring
You may want to consider restructuring your finances if:
- You’ve had a change in income or expenses
- You’re planning to invest or expand
- You’re feeling pressure from repayments
- You want to unlock equity or access funds
- You’ve added a new family member (or business partner)
Real-World Example (No Advice)
Let’s say a household with good income and equity wants to buy an investment property. But their existing home loan isn’t structured to free up funds. By refinancing and adjusting their repayment terms, they could access equity to fund the deposit — while keeping repayments manageable.
It’s not just about getting a new loan. It’s about making your current setup work better.
Final Thoughts
If you’re building wealth, structure matters just as much as strategy. Even small changes can have a big impact over time — especially if you’re managing a family, running a business, or looking to invest.
Consider speaking with a qualified professional who can look at your full picture and help you align your setup with your goals.
Compliance Notice
This article is for general informational purposes only and does not constitute financial, tax or credit advice. Please consult a licensed professional for advice specific to your circumstances.