A young person's guide to managing money

19 February 2019

When we first start earning money, retirement planning probably isn't our top priority. But establishing a good bedrock for later life is easier if you start managing your finances earlier in life. Here are six tips to get you started.

 

1. Pay off your debts

If you've ever taken out a loan, or racked up credit card debt, pay it off as soon as possible so you don't end up with a stack of interest on top of the original repayments.

Also, don't use your credit card to buy anything you wouldn't otherwise be able to afford. You may start yourself on a debt spiral, which can be tricky to escape.

2. Think about those big buys

Like your retirement, your first home might seem like a dot on the horizon right now, but your future self will be grateful if you start putting money aside now.

Creating a budget and tracking how you spend is integral to saving and keeping yourself on track.

3. Have a separate savings account to your everyday transaction account

Once you've got your budget sorted, it's a good idea to transfer a regular amount from your everyday transaction account into a separate savings account as soon as you get paid.

Out of sight, out of mind, as they say, and you're putting that money aside for your future.

4. Discover how you can ease your cost of living

Check out our article to find out how you may be able to access government rebates. You can then put what you've saved into your savings account.

5. Start saving for your super

It's never too early to start thinking about how you'll support yourself when working life is over, and super plays a big part. After all, you may have more savings in your super account than in your bank account. Be sure to make the most of your super early by:

  • Consolidating your super
    Do you have more than one super account? Consolidating your super in one place reduces the amount of fees you pay and makes it easier to manage. With LGS, it only takes a few clicks to search and consolidate your super accounts
  • Taking advantage of the Government Co-contribution
    If you earn less than $52,697 a year, and you're eligible, you could receive bonus super contributions from the government if you make extra, voluntary contributions from your after-tax money. Find out if you're eligible.

6. Do your research and get advice

It's important to do your research before making any financial decisions. Look into the small print, and it’s a good idea to compare fees and benefits.

Find out more on how you can make the most of your super and your future.

And if you have any questions, you can live chat with us or call 1300 547 873.

The information on this website is of a general nature only and does not take into account your personal objectives, situation or needs. You should consider obtaining professional financial, taxation and or legal advice tailored to your personal circumstances prior to making any financial decision.