The big save…what are you waiting for?
July…. The start of a new (financial) year. It’s a great time to put in place all those financial decisions you have been wanting to do and keep putting off.
- Saving for a house?
- Saving for a car?
- Saving for a holiday?
- Saving for super?
- Just simply saving for the unknown???
The easiest way to do this is splitting up some of your wage into another account direct debited on pay day, so it’s gone before you know it’s there. Ask your HR or payroll advisor to set this up for you.
- Make sure it is not easily seen on your internet banking – if you cannot see it you will not miss it.
- Make sure it is does NOT have a key card and is not set up for transfers out. Set it up that you have to physically go into the bank to withdraw – so you cannot access it when out and about, like shopping or at the pub.
- Try your hardest NOT to touch it!
How much can you afford per week if you never saw it?
- $50 week at 2.5% over 5 years = $13,843.90 = Great holiday!
- $100 week at 2.5% over 5 years = $27,687.80 = This could be a car?
- $200 week at 2.5% over 5 years = $55,375.60 = This could be a deposit on a house – No more rent!
Remember, if you put money into super you can also get a tax deduction – for example $50 per week into super, earning 6% over 20 years, adds an additional whopping $100,438.91 to your retirement spending’s, not to mention an approximate additional $17,000 in tax savings over the 20 years as well.
The smallest amount of saving is a great start and it does come down to what you can afford and re-adjusting your spending patterns to allow for your savings outlay.
So what are you going to save for?
Advice in this blog is general in nature. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your particular investment objectives, financial situation and individual needs. Principal Wealth Management Pty Ltd trading as BMO Financial Solutions ABN 53 109 336 601 is a Corporate Authorised Representative of McPherson & Associates Pty Ltd Australian Financial Services Licence (AFSL) 229883. McPherson & Associates Pty Ltd and its Authorised Representatives do not accept any liability for any errors or omissions of information supplied in documents on this website.
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