10 Tips to Save Money

Many include saving money (or saving more money) as one of their new year’s resolutions. Problem is, life quickly gets in the way and before they know it their resolution is long forgotten.

Here’s 10 simple tips to help you be successful in your money management.

  1. If you have a credit card pay it off in full each month thereby paying no interest. If you are not in a position to pay it off each month seriously ask yourself whether you should have a credit card in the first place.  Remember some cards carry interest rates of 19% or higher;
  2. If you have a large number of bank accounts incurring fees review whether you really need all of them;
  3. Promise yourself to bank a percentage of your regular wage/income to savings/wealth building. You can put this into a separate bank account, or, if you are minimising bank fees by reducing the number of accounts, use a spreadsheet to monitor the allocation of the money in the account.
  4. If you don’t have private health cover and you are paying the Medicare levy check with your accountant if the income you are earning means you may save money by taking out private health cover;
  5. If you’re a low or middle-income earner and make personal (after-tax) contributions to your super fund, the government may also make a contribution (called a co-contribution) up to a maximum amount of $500.  The easiest $500 you will make this year!;
  6. Look at the option of paying insurance from within super but remember that while this means that you are personally not paying the insurance thereby saving you money remember that it also means that you are losing some of the benefit of compounding your income through super.  Before doing this speak to your financial planner about whether this is a suitable option for you.
  7. Consider salary sacrificing some income into super thereby reducing you tax and at the same time providing for your future;
  8. Use negative gearing where appropriate to increase wealth and gain a tax advantage, but discuss this with your accountant and financial planner before going down this path;
  9. If you are in business make sure you have the correct business structure to minimise your tax liability;
  10. Keep fit and healthy – might seem a strange way to save money but if you go to the medical professionals less then you will be paying them less as well as less sick leave and at the same time enjoy life more;

If you would like to discuss any of these points further please call Balanix Solutions 07 32644783.  Please note: The above comments are not meant as financial advice but rather general comment.  For financial advice you should consult your financial planner for advice that is suitable for your individual circumstances.

David Balwin FCPA Registered Tax Agent
Don’t have an Accountant – call me today to help 07 32644783