8. If you didn’t win the parental lottery, look up the government’s First Home Loan Deposit Scheme.
9. Don’t spend on a wedding what could be a home deposit.
10. You don’t need to be Warren Buffet to invest in shares. With micro-investing sites and apps, like CommSec’s Pocketbook, Raiz and Spaceship you can start investing with small amounts. Always check the fees first.
11. Don’t know where to start? Invest in Exchange Traded Funds (ETFs) that track a broad index, such as the ASX200.
12. Your super is real money. Contribute extra, if you can, to maximise tax breaks. You’ll only pay 15 cents in the dollar in tax, as opposed to your marginal tax rate.
13. If your super balance is under $500,000, you can rollover unused concessional cap amounts (currently $25,000 a year) from previous years. Check your MyGov account.
14. If you’re going to tip in extra to super from your after-tax dollars, be sure to claim a tax deduction at tax time for a nice, fat tax refund.
15. Buy secondhand. Get over the “ick” factor. Use Facebook Marketplace or Gumtree to buy and sell your stuff.
16. If purchasing in store, ask the sales assistant: “What’s the best price you can do on this?” Smile.
17. Shop at Aldi. It’s definitely cheaper.
18. Don’t waste food. Freeze things before they go off.
19. Cook at home as much as you can.
20. Shop around for everything, from insurance, to petrol, even tyres.
21. Increase your insurance excesses – the out-of-pocket cost you agree to pay in the event of a claim – to enjoy lower premiums.
22. Only pay for “extras” health insurance if you can see that your benefits received will exceed the premiums you pay.
23. After age 31, maintain private health insurance to avoid paying the Lifetime Health Cover Loading on policies. You can ditch cover for just under 3 years and still avoid the loading.
24. If you earn over the income thresholds for the Medicare Levy Surcharge, take out the most basic hospital cover to avoid paying it. It’ll most likely be cheaper than the surcharge.
25. Use privatehealth.gov.au to shop around on health insurance.
26. Go to energymadeeasy.gov.au for cheaper electricity bills. In Victoria, you need to use compare.energy.vic.gov.au.
27. Try whistleout.com.au for internet and telco deals.
28. For loans, use Canstar, RateCity, Finder and Compare the Market.
29. Invest in your health. You are your own best asset. Your ability to generate income depends on your physical and mental health. Spend a bit of money to protect them both.
30. In pay negotiations, always let them make the first offer. Failing that, ask for twice what you want and then be happy when you get half. Be prepared to walk.
31. Do a job in which you have a “comparative advantage” – one that both suits your skills and which you can do relatively better than everyone else.
32. Remember the true cost of something is what you give up to get it. That includes not only money and time, but also the “opportunity cost” of the next best thing you could have done with that time and money. Choose carefully. Live deliberately.
33. Travel as much as you can. Set up “Future Funds” where you contribute a little each month to afford nice holidays.
34. A man is not a financial plan. Plans go wrong. Always keep yourself financially independent.
35. Childcare costs as much each year as the ritziest sandstone-clad private school. Brace for it.
36. Kids don’t cost as much as you’d think because your lifestyle adjusts to accommodate them.
37. You don’t need $1 million to retire. The age pension isn’t going anywhere and many people will use it to supplement their retirement income.
Loading
38. Save for tomorrow but also live for today.
39. Life goes quickly but is also long (touch wood). Plan for it.
40. You are capable of achieving so much more in 40 years than you could ever believe.
With time and patience, you can afford the life you want. Small differences today can make a big difference to your financial future. You’ve got this.
You can follow Jess’s budgeting and money adventures on Instagram at @moneywithjess and subscribe to her free weekly email here.
Source: | This article originally belongs to smh.com.au
ncG1vNJzZmhqZGy7psPSmqmorZ6Zwamx1qippZxemLyue82erqxnZGV6tbTIp56sZZlixKq%2Fx2agZqOemsRurcGorK1lnaS7psWMm5yfp6KaerXB0aegp59daX1w