Let’s be real – life can be hectic, and it’s easy to let important financial tasks fall by the wayside. But trust me, taking care of these responsibilities, especially if you’re saving to buy a home, can make a world of difference.
Let’s look at some aspects of adulting that can really pay off. I’ll walk you through some essential financial planning hacks and share some adulting tips on how to make them less of a headache.
Get cracking on your tax return and spend it wisely
I know, filing your tax return is about as fun as watching paint dry.
But here’s the thing – if you get it done early, you can use that refund to pay off debt or boost your savings. Focus on knocking out high-interest debt first, or start with the smallest debt to gain some momentum. Either way, you’ll be glad you did.
If you are wanting to reduce debt there are a couple of approaches you could consider. Filing your tax return early allows you to use your refund to pay off debt or increase your savings. Prioritize paying off high-interest debt or focus on the smallest debt to build momentum.
Maximising your savings
Want to know a secret? The “pay yourself first” method is a game-changer. Use the “pay yourself first” method by automatically deducting a set amount from your pay into a savings account. Set up an automatic transfer from your paycheck into a savings account, and watch your nest egg grow.
Lenders love to see consistent, disciplined saving when considering loan applications, so you’ll be doing yourself a huge favor. Working with seasoned financial advisors Melbourne can help you secure the right path towards your financial goals.
Know your credit score
Another thing a potential lender will be interested in when deciding whether to lend to you and how much they are prepared to lend, is your credit score.
Your credit report is like a snapshot of your financial life. It includes your credit history and financial habits, and it plays a big role in determining your creditworthiness. Your credit score can be influenced by several factors including your debt (past and present), including any problems you’ve experienced repaying that debt, as well as loans (and loan enquiries) you’ve taken out.
You can get a free copy every three months from credit reporting agencies like Experian, illion, or Equifax. Take a close look at factors like past and present debt, repayment issues, and loan inquiries – they all impact your credit score.
Give your expenses a once-over
I know, going through your credit card statement line by line isn’t exactly thrilling. But it’s a great way to spot unused subscriptions or services that are draining your wallet. While you’re at it, take a few minutes to compare rates for utilities and insurance. You might be surprised at how much you can save by switching providers.
Protect your assets
Listen, I get it – paying for insurance can feel like a waste of money when you’re trying to save for a home. But imagine how much it would cost to replace your belongings if something happened to them. Home, contents, and car insurance can safeguard your assets and prevent a major setback in your savings journey.
Pay attention to your super
Your superannuation might seem like a distant concern, but it’s crucial to ensure you’re getting what you’ve earned. Your employer should be contributing at least 11.5% of your earnings to your super account. If they’re not, the Australian Tax Office (ATO) can help you recover any missed contributions.
A series of small tweaks and changes in the way you manage your financial situation can really add up, so set aside a rainy day when you’ve got nothing better to do and commit some time to catching up on your financial admin – it will be worth it!
To learn more about financial security, speak to our qualified team of financial planners and wealth creation experts.
Contact us online or call us on 03 9427 0855.
