We all like a good cost saving tip, even if it is something we already know, it never hurts to revisit some top tips and take a look at our current situation to see if there are savings to be made.
Any little savings we make throughout the year can be diverted to a bigger savings pool such as an investment portfolio or term deposit to help build wealth over time.
Check your super
If you are not completely aware of what you have in your super fund and how it is performing now is the time to do a quick investigation. Having one fund, instead of multiple funds may save you on fees. Being with a top performing fund rather than a default fund could mean a higher return on your investment, which really adds up over time. Making sure you are only paying for what you need is important, if you are paying for insurance when you have a separate insurance policy this could be an expense you get rid of. However, there is not a one size fits all approach, which is why tailored financial advice could help to find a super solution that suits your individual circumstances. You can also check out Canstar's website for a fair comparison on most super funds within Australia.
This is a great way to boost your super while simultaneously reducing the amount of tax you pay. It works but having some of your pay diverted to your super fund instead of your bank account. This diverted money is then taxed at the super fund tax rate of 15%, which is lower then every other tax rate. The difference in tax percentages is your extra savings. The other benefit of course is that it boosts your super fund and with the power of compound interest over time you can set yourself up for a nice retirement lifestyle. Further, in relation to recent market events, some argue that it is a great time to add to your super, however it is important to be aware of the risks in doing so.
Reviewing your utility costs each year can be a great way to make little savings add up. By reviewing the contracts you are on, asking the provider for a better deal or getting onto a pay-on-time contract that offers a discount are simple ways you can save on utilities. Consider ways you can be smarter with your utilities at home – buy energy efficient appliances, turn of lights when you are not using them, take shorter showers, install a water tank, be conscious of your use of utilities. This is particularly important for the vast majority of people who are forced into staying at home.
Because of the country's current lock down, this tip way not seem so relevant. However, when things have blown over and life returns to normal this can be a particularly helpful reminder.
Whilst you don’t want to deny yourself too many little luxuries or conveniences, looking at your levels of consumption could expose some cost savings. Consider walking or taking public transport (after the virus of course) rather than driving everywhere, only buy what you need at the grocery store rather than stockpiling, reduce the number of times you eat out or buy coffees by one less a week, don’t rotate your wardrobe items until you have worn out existing items, take advantage of free activities in your local area such as the beach, bush walks and bike tracks which will connect you with the community and save money on entertainment.
One of our financial advisers can help you with cash flow and budgeting, and help with diverting your savings into a vehicle that can start making you some money.
General Advice Disclaimer: The information in this report is general advice only and does not take into account the financial circumstances, needs and objectives of any particular investor. Before acting on the general advice contained in this report, an investor should assess their own circumstances or seek advice from a financial adviser. Where applicable, the investor should obtain and consider a copy of the prospectus or other disclosure material relevant to the financial product before making any investment decision to acquire a financial product. It is important to note that the price or value of financial products go up and down and past performance is not an indicator of future performance.