Finance

Smart Savings Tips for Australians

Saving is important for securing our future finances. While most Aussies think about saving, few rarely get around to it beyond mandatory supers. It’s important to save to ensure finances your retired future as well as immediate future when you might get sick or laid off unexpectedly. Here are several tips for saving smart for the future:

Set Long and Short Term Goals for Savings

While starting to save for any purpose is a great way to learn financial discipline, you should start saving with goals in mind. There are typically long and short term goals for saving. For example, you may have a short term goal of saving money for a trip to Europe. You may also have long term savings goals such as for retirement or buying a house. It’s important to clarify these goals before you start saving. It will help you save smartly and also act as a motivator to keep saving.

Used Digitized Superfund Advise Tools

Forward thinking Australians already have goals in place to save for retirement. And some even pay hefty fees for professional advice for these retirement funds. In fact, if you have multiple supers because of multiple jobs, you might be paying more in taxes and fees, which is not smart at all. Therefore, use a digital SMSF financial advisor to dramatically reduce the cost of savings advice. You can use digital tools to self-service and oversee your fund without draining it because of various advising fees. You can essential use a digital software program to make informed decisions about your retirement plan.

Invest in Something Other Than the Stock Market

Stock market investments can be tempting because of the returns. Besides, everyone is doing it. However, stocks can also be notoriously volatile and thus is not a smart way to invest on the long term. If you want better investment choices, diversify your portfolio with bonds and assets. Assets like real estate in Australia can be highly lucrative on the long term. Even if housing prices crash, you would still have a useful house. Therefore, don’t put all your eggs in the stock market basket. Consider all your options to enjoy bigger and stabler returns in the future.

Control Impulse Buying

Even if you save a little now, impulse purchases can really cut into your budget. If you are in the habit of making compulsive purchases, make sure you control this particular bad habit. You can instead save all the money you spend on things you don’t need. You may not get there right away, but you should have at least a slow and steady plan in place.

Insure Your Retirement

Do you have a risk management plan for your savings accounts and retirement fund? If not, then you really should. No one wants to spend years saving money only to lose it all thanks to factors out of one’s control. Therefore, insure your retirement plan and think about other insurance policies that might ensure your long-term savings are as secure as possible. You don’t have to go overboard with insurance, but the necessary policies should be protecting your financial future.

Don’t forget to do your research before you start on a new savings or investment path. For example, you might decide to forgo fiat currency for digital currency like Bitcoins. But you should only do that if you know exactly what Bitcoins are and what it can do for your financial future. Follow the above finance tips and stick to a smart plan.

About the author

Oliver Revilo