Travel or tinned beans?

Which choice would you make? And believe it or not, at this age, with time on your side, getting ahead financially is easier than you think.  If you are one who would choose travel over tinned beans, here’s three simple steps you can take now to set yourself up financially in the future – and skip the beans.

TIP 1: Set Financial Goals
Start with a bucket list, what are all the things you’d like to do throughout your life? Now sort them into timeframes. Pick one core goal per timeframe and each pay slip you receive, allocate money toward that goal. For example:

–    SHORT TERM (1-3 YEAR) GOAL: Go to New York for two weeks. Set up a savings account, contribute some every pay cheque.

–    MID TERM (7-15 YEAR) GOAL: Educate your children. Consider an investment such as an investment property, managed fund or share portfolio, contribute even a small amount from every pay cheque.

–    LONG TERM (20+ YEAR) GOAL: Have the choice to retire at 60. Make sure that your superannuation plan is the right one for you, considering fees, investment options, insurance coverage, and any other benefits. To have the ability to retire early, you might want to consider contributing funds to super above the legally required minimum amount (SG contributions) from your employer.

TIP 2: Pay Off Personal Debt
Paying interest is lost money. For example: If you have $3,500 owing on your credit card, paying 21.5% interest and are only making the minimum repayments of $70 a month – it will take you 90 years and 1 month to pay off and you’ll have racked up $27,050 in interest!  Even by paying a little extra each month, say $150. You’ll repay it in two years 8 months and only accrue $1,074 interest. Earn more, spend less or use savings to get rid of credit card debt ASAP so you can start focusing on your exciting goals ahead.

TIP 3: Choose Super Investing Options Wisely
You can choose how you invest and contribute to your super. Compound interest 101: Say you’re 25 years old and you can access your super when you’re 65 years of age. If you have $1,000 in your fund currently and are earning $65,000 a year, contributing 9.5% of your annual salary, being $6,175.  If you receive 5% returns, you’ll retire on $752, 979. If you receive 6% returns you’ll retire on $965, 941. If you receive 7% returns you’ll retire on approximately $1,250,000. We can’t change the timeframe with super but we can influence our rate of return. Always check what your agreed risk profile is. Whether you’re in a conservative (more cash, less shares, property) or high growth (less cash, more shares, property) investing option, it’s important to understand what assets make up your account and whether they will deliver the growth and income you require to meet your goals. But also remember that with greater potenital for growth is greater potential for loss so adjust your portfolio wisely based on your views.

You also have options to contribute on top of the legal minimum paid by your employer, contributing $1,000 per annum on top of employer contributions could result in as much as a $100,000 difference when you retire.

If you need help setting a spending and savings plan, reducing debt or would like more information around the investment options in your super, please contact our office today.

No matter where you are on your financial journey, you need to know that it’s possible for anyone to turn their financial life around. As with most things, sometimes that very first step is the hardest part. We have created a list of tips to start saving money today.

None of these tactics will be life-changing on their own, but they can make a difference over time if you are able to implement more than one. Some of these suggestions take just a few minutes, while others require a bit of regular effort. Still, they’re all incredibly simple – anyone can do them.

So here we go with our money saving ideas:

 
– Have a save buddy. Saving while hanging out with spenders can mean your money goes on impulsive or unnecessary items

 
– Review your bank accounts. Are you paying fees? Are there cheaper offerings? Are you restricted on what you can do with your money?

 
– Master the 30-day rule, waiting 30 days to decide on a purchase can give you better perspective on whether it’s truly worth the money, often the urge to buy the item has passed

 
– Write a shopping list before you go shopping to avoid impulse buying

 
– Lock up your credit card for a month and only pay for things with cash

 
– Set a limit for birthday and Christmas presents and don’t go over

 
– Buy in bulk

 
– Have a portion of your salary paid directly into your separate savings account

 
– Set a savings goal

 
– Pay your bills on time to avoid late fees

 
– Shop around for necessities such as car insurance, house and contents insurance, gas, electricity, phone, etc.

 
– Unsubscribe from sale email alerts. This is just constant temptation

 
– Stop buying bottled water! Buy a water filter instead if you can’t drink tap water

 
– Only purchase classic clothing that you can wear again. If you know you’ll only wear it once or twice, consider borrowing from someone rather than buying that sequent and lace floor length ball gown

 
– Empty your pockets and wallets of coins at the end of each day into a jar. But make sure to deposit into your savings account and not dive into because you want a coffee

 
– Double down. If you do have to buy luxury items, like makeup, wine or clothes, try saving the same amount. $15 on that gorgeous red lippy you had to have might not seem so great when it comes with another $15 savings requirement. If you can’t afford both, then you have to step away.

If you struggle to manage your money and wonder where your savings disappear to each month, fear not! Our comprehensive program will put you back into the driving seat, using high impact track and reporting technology teamed with expert advice. We’ll help you get your finances on track, so you can achieve your goals, plan for the future and say hello to a happier, healthier life where YOU are in control.

Cash Coach is a program run by JBS Financial Strategists. We believe that the biggest influence on achieving your goals is how you use your cash flow, so we start from there and help you develop great money management skills. Our aim is for you to consistently have money left over at the end of the month, so you can direct it towards the stuff that really counts!

If you’re not sure where to start – contact the team at JBS and we can run through a financial health check with you. This is a great way to understand your financial position and the team can identify any trouble areas, offer possible solutions and could also find growth areas you may not have considered.

Happy Saving 🙂