Our financials underpin our whole life. When we don’t have money, we lack security and life begins to feel like a struggle. To get on top of your money matters, follow these smart tips to save for a rainy day and start building a secure financial future.
Budget, budget, budget!
The single most effective way to get your bank balance into the black is by creating a budget and sticking to it! There are plenty of resources available online, including some great tools by the Australian Government. You can access budget templates to help you prepare your budget and most importantly, track your expenditure against your budget. Most of these resources include mobile apps so you can track your spending while you’re out at the shops and other places where you spend your money.
Make sure you also set up a dedicated savings and spending bank accounts. Have a percentage of your pay directly deposited into each account once you’ve figure out the amounts you need or want to save and spend.
Manage your debts
Have a very clear understanding of your accumulated debts and identify ways to consolidate numerous debts into one. By doing so, you stand a very good chance of paying a lower interest rate. For example, credit cards charge a whopping interest rate of around 19% per annum, whereas, a personal loan generally charges about 13%.
Gone are the days of being paid a Government pension upon your retirement. Having enough money to retire on is critical and you need to start planning for your retirement as early as possible. You need to ensure you build enough of a ‘nest egg’ to live on once you stop working.
Another very important thing to watch out for with your super, is to make sure you don’t have loads of different super accounts lying around the place. Each fund will have their own administration fees and sometimes, insurance costs that eat into your returns. Additionally, some funds have better investment returns than others so ensure you compare funds and pick the one that’s right for you and your situation.
Have a financial plan in place
When you’re sick you see a health professional, when your car needs a service, you see a mechanic right? So why not seek professional advice and help from an accountant or financial planner to help you with your finances? They’ll work with you to develop a financial plan to help you achieve your financial and life goals over the short, medium and long-term. They’ll help you structure your budget, talk about investment options (including super) and securing your wealth now and in the future through a combination of appropriate insurances (eg. trauma, life, income protection). They’ll develop a Statement of Advice for you which is tailored to your goals and will be reviewed on regular basis.
The legal stuff
The more you have in place to manage your money and the more money you accumulate, will require you to think about what happens to it all if you pass away. Super, investments and other financial affairs all need to be dealt with, even your funeral. Make sure you talk to an experienced lawyer, such aswho can help you develop a comprehensive Will that may cover things you hadn’t even thought about.
Money matters. It enables us to achieve a certain level of comfort in our lives, to develop financial security now and in the future as well as helping to make dreams come true. Start with these simple but smart tips for how you can get ahead financially and reap the rewards.