Starting out
Whether youre studying, working or travelling, living at home, with friends or even buying your first house, now is the best time to get smart with your money. In fact, the choices you make now can impact the kind of lifestyle you’ll lead, and the right practices and strategies can set you up for life.
And understanding how your superannuation works, the difference between good and bad debt and how to budget, save and invest your money needn’t be complicated.
Good practice makes perfect sense
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Spend less than you earn. |
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Save or invest regularly, even if it’s only a small amount. |
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Avoid bad debt. Make sure you pay off personal loans and credit cards as quick as you can. |
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Be wary of credit offers and special deals. If they sound too good to be true, they probably are |
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Got several loans or credit cards? Consolidate them into one with a lower interest rate and fees. |
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If you can, cut up your credit cards entirely – try a debit card instead. |
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Moving out of home usually requires a bond that’s the equivalent of one month’s rent – plus another month’s rent in advance. |
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Do your homework and know what you’re entitled to. There are plenty of wealth building incentives available from the government, employers and other sources. |
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Buying a home is a big step. Try to save a 20% deposit and you’ll save yourself thousands in mortgage insurance. |
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If you’ve got a home loan make larger and more frequent payments. This will save you thousands of dollars and cut years off your loan. |
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Superannuation funds vary a lot, so get advice about what’s best for you. If you have a few super accounts, reduce the fees by consolidating your accounts. |
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Start an investment plan early. Consider an automatic debit from your pay into a separate bank account. |
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When you’ve got $1,000 saved invest it in a share fund. Then top it up with regular monthly contributions. |
Click here if you would like to make an appointment with a Bendigo Financial Planner.
This information has been prepared by Bendigo Financial Planning Limited ABN 81 087 585 073, AFSL 237898. It is provided as general information and must not be relied upon as a substitute for financial planning, legal, tax or other professional advice. The information is given in good faith and should not be considered a comprehensive statement on any matter nor relied upon as such. Bendigo Financial Planning (including its related entities, employees and directors) does not give any warranty of reliability or accuracy or accept any responsibility arising in any way including by reason of negligence for errors or omissions in the information contained in this communication. Bendigo Financial Planning is a member of the Bendigo and Adelaide Bank Group ABN 11 068 049 178 AFSL 237879. (S27486-1) (01/10)
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