If you're a little, well… disorganised… when it comes to money, and by “a little” we mean a lot -- the good news is we can guide you through the financial overhaul you need.
Here's 6 ways to start...
1. Sort out your superannuation account
When it comes to super, and you start thinking about your many accounts...then you’re precisely the person we need to speak with.
You need to have one superannuation account. Not two, and definitely not five. One!
The reason; well, additional super accounts translate to additional fees.
The ASIC MoneySmart superannuation calculator shows that having one super account over 40 years will include $14,000 of fees. But if you have up to five accounts? You’re unnecessarily throwing an additional $56,000 of fees down the drain. Silly stuff!
Superannuation might be pretty boring, but it’s also pretty damn important. We highly recommend having a chat with one of our advisers to review and consolidate your super accounts, but also make sure you’re picking the right one -- because there may be more to consider when comparing supers than just the fees.
But get onto it sooner rather than later -- because it's never too early to make smart decisions about your retirement, even in your 20's.
2. Increase your repayments on debts
Ever heard the expression "Short term pain, long term gain"! Well its true in this case.
You can choose to pay the minimum debt repayments, of course, but you’re going to absolutely cop it in interest in the long term. The wiser option is to repay any outstanding debt off quicker – freeing up your cash flow ASAP and allocating it to something more important. You’ll save both time and money, so it’s ultimately a win-win.
Need a debt-reduction plan? Maybe a chat about budgeting and cashflow management could be useful? Let's chat.
3. Why pay a membership you don't use?
There is absolutely no point forking out for monthly memberships you’re not getting any value from.
We get it, that gym membership was full of promise and good intentions...but maybe it's time to admit this particular relationship isn't working and cut it loose!
"It's not you, it's me."
4. Re-assess your bank choice
Are you paying fees for no reason other than having your money with a bank? Have a look around the banking landscape...its changed and there's plenty of other banks out there that won’t sting you with ridiculous fees for absolutely no reason.
While we're on the subject of banks -- make sure your savings work harder for you. Or at the very least, check that you're earning some thing that resembles decent interest -- pretty tough these days. So your best option might just be an offset account (if you have a mortgage) or better yet, invest it. There’s no use leaving money in an account collecting digital dust – give it the best possible chance to grow.
Not sure what an offset is, or if your bank even offers one? Not sure what we mean by investing your money? Get in touch with one of our advisers for a chat...knowledge is power after all!
5. Pack your own lunch
Alrighty, let’s crunch the numbers. Say you buy your lunch every week from the cafe near work. A drink plus a chicken panini will set you back an absolute minimum of $12, right?
$12, five times a week, for 48 working weeks, equals $2,880 a year. If you’re buying a $4.50 almond cappuccino every morning that’ll bring your unnecessary food budget to $3,960.
Or, you know, return flights to Europe and at least 10 days of fancy accommodation.
Food for thought!
6. Give up bottled water for good
Heard of a tap? Heard of the environment?
Yep - the truth hurts.
The team at WCG are experts in millennial money management .
We advise, assist, and educate young people in growing their wealth.
Stop saying I'll start tomorrow...and start today!