Financial and Savings Advice for Young Adults

The days of living week to week should be a thing of the past! Blowing all your money on a big night out might be fun, but you’re really shooting yourself in the foot for that trip overseas or sexy new car you've been eyeing off. In an effort to help your dreams come true, we’re offering some free financial advice, so students and those new on the workforce can build themselves a nice little nest egg.

Superannuation - why it’s amazing.

Australia has mandatory superannuation because its good for workers and it’s good for investment. We have a minimum contribution rate (how little you have to give) at 9% of your total pay. As workers, we can opt to make greater contributions to our super fund, increasing our super to 12% can dramatically increase the money left for retirement. Also, you can make a voluntary after-tax contribution could boost your super by 50c for every dollar you add each year with the Government’s co-contribution scheme. An extra $500 in your super each year if you earn under $47,000 a year? Free Money? Yes please!

Get insurance - seriously!

To us, insurance seems like a wank! We continually find ways we cannot justify paying money for something that we can’t see, though young people find themselves needing car and health insurance more frequently than ever. There are even specialised products designed for renters and share houses, so have a peruse and find which is best for you. There are some great insurance services providers for young people, so try iSelect or Lifebroker for financial and insurance advice.

Understand your tax

Understand how much tax you pay and when your tax returns are due. While you can cheaply get your tax return done by yourself, sometimes it’s best to get some advice for a tax agent or accountant. They know what you can claim, how to cut down your expenses and avoiding tax you don’t have to pay! Who pays more tax! There’s an important difference with tax you should be aware of. Tax evasion is when you dodge tax you should be paying. Tax avoidance is taking measures to avoid tax you SHOULDN’T have to pay, your accountant will know the difference.

You’ve got some excellent free advice, but you should always check with a consultant such as LFS Legal and see which superannuation, insurance and tax products suit your situation, so they can tailor a solution that fits your needs.

How To Save Money

Have any of you ever tried to save money? It does not really matter what you are saving money at, the most important is to have a goal.  You know, I get asked same question from time to time: How can you resist temptation to buy something or maybe to go out once in a while? The answer is simple: I do not resist it. I am just a human after all, in order to keep moving I need to reward myself sometimes. This is the article for those who are in the process of doing some savings. Check the list below; maybe you are going to find something you are not doing, but willing to try right away. 

I would recommend starting with simply setting a goal. It is great if you have the answer ready.  If you do not, take a time, think of your dreams. It can even be some sort of a childish wish. Dream big! Ok, so this is what I do to have extra money. 

- I bet that every third American loves to drink coffee on his/her way to work. Alright, prepare your own coffee. Go to the store, buy a coffee cup and enjoy your home-made coffee every day. Buying a coffee at the local gas station or at the fast food does not seem to be an expensive thing. But try to calculate how much you are spending yearly on a single cup of a coffee? You will be pretty surprise.

- Check where your colleagues live. Maybe someone lives in your neighbourhood or simply on your way to work. This way you can easily save on gas and enjoy somebody’s company.

- Lunch time at work. Try to bring your brown lunch bad at list three times a day. It will save you some money+ you are sure your food is healthy.

- Cook at home. Cooking can become a lot of fun. Gather your family to help you. So what you get: quality family time + no need to pay for your diner somewhere else.

- My next tip is for those who live in a house. Grow your own veggies. Frozen food in a grocery store is not the best choice you can make. Believe me, it is a great feeling to finally see your small harvest.

- Be energy efficient at home. Do not forget to turn of your light every time you leave room. Better idea would be to switch to a solar energy. One time payment will then bring some good results in saving on your monthly bills.

- I know a lot of people who always feel sorry for their old things. They storage them in the garage. This is so wrong! Do not keep old stuff. Remember, most of you will not buy something new until you finally say good buy to the old things. Not only do garage sales, but also participate in somebody’s. You may find pretty useful things for a very reasonable price that your neighbours do not need anymore. See, it is like a circle: you give and you take. 

- Think of what you do the best. Do you have any hobbies? Maybe you can make some extra money doing something you have passion for.

- Credit cards are the biggest problem in the US. Do not get caught by all the fee credit cards. Do not overload yourself with 4, 5 or even 6 cards. Use them only for big purchases. Do not forget to make in time payments.

- Sales….Yes, they are difficult to resist sometimes. Be strong and learn how to prioritize things. Do not buy another fancy accessory for your car or a new pair of expensive shoes only because these things are on sale now. Some web sites promote lending companies so that people had even bigger desire to buy from them. This is a kind of service created only for emergency situations. 

 I can give many more examples on how to do savings. But I would like you to understand that it is all up to you. Question everything you do or buy. As I have mentioned already, spoil yourself every once in a while. You deserve this! 

Alicia Sanders is a financial expert and writer working with no fax payday loans online.