Be logical
Make decisions with your head, not your heart.
Don't stop living
A social life, travel and entertainment are fine - when paid for responsibly.
Hobbies and social contact are a sound investment, promoting good physical and mental health which in turn supports financial health.
Illness means time off work, higher medical costs and poorer decision-making.
Beware loyalty taxes
Review costs regularly (bank, utilities and insurers) and shop around for better deals, then ask your current provider to do better or leave.
Check deals really are better before switching - headline prices often obscure higher ongoing charges or fewer inclusions.
Be ruthless on waste
Eliminate wasteful spending - only pay for what you use. (gym membership or streaming services).
Spend points
Use store loyalty credits, frequent flyer and credit card points to buy everyday essentials instead of cash. Redeeming them for goods or gift vouchers, instead of services or cash, often maximises their value.
Get a will
Even young people need a will, nominating where you want assets to go (e.g., loved ones, particularly charities). Without a will, your wishes may be unknown or disregarded, while grieving relatives and your partner may fight over who gets what.
Nominate beneficiaries
Superannuation is separate from your will, so nominate beneficiaries within your fund.
Update beneficiaries as your circumstances change or your ex could enjoy an unexpected windfall at the expense of your current partner.
Buy wheels wisely
When buying your first (and subsequent) car, weigh up which option is best financially.
New cars lose value faster; used cars may require more maintenance; salary-sacrificed leases can save tax, but typically for higher income earners.
Get saving
Saving money demonstrates discipline and good money management - skills lenders and investors look for if you seek a mortgage or funding to start a business.
The earlier you begin saving, the more history you can show.
Safeguard credit ratings
A good credit rating is essential for borrowing money, securing rental properties and more.
The government's Moneysmart site has tips for checking your credit score and fixing any mistakes.
Maximise inheritances
Discuss inheritances with your parents/grandparents to manage this transfer effectively - for them and you.
There are many tax considerations around inheritances. Meanwhile, different asset types offer different real value e.g., can you afford to maintain a property, or would you be forced to sell it - and face taxes, sale costs and losing a family heirloom?
Embrace family benefits
Family Tax Benefits can ease the cost pressures of raising kids, and eligibility depends on your circumstances.
Centrelink payments and other family incentives from federal and state governments are also available.
Protect blended families
Blended families require more attention to protect and provide for everyone equally.
Update your affairs as relationships change. With estate planning, assets like super can provide for kids with an ex while joint assets support your current partner and children together.
Career options
Choose a career where opportunities and earnings potential are greatest.
Manage HECS/HELP loans
If you can, making extra repayments could reduce that burden.
A payrise at work could reduce your take-home pay if it pushes you up a HECS/HELP bracket.
Perhaps negotiate non-cash perks, higher super contributions or additional training instead?
Good recordkeeping
Provides visibility over spending, identify (and prove) eligible tax deductions, and allow you to spot any problems quickly.
Dodge consolidating mistakes
While multiple super funds are generally excessive, consolidating isn't guaranteed to save money.
Rolling into a higher-fee or poorer-performing fund costs more, not less.
Consolidating automatically terminates insurances (life, disability etc) within the fund being closed. You could inadvertently lose a superior policy or be left exposed without coverage altogether.
Invest in yourself
Upskilling is an investment in your future earning power and promotions.
Avoid runaway debts
Credit cards, interest-free store loans, and buy now pay later schemes allow debts to quickly snowball. Pay bills and taxes on time to avoid them ballooning with interest and late fees. Use cash instead of cards to monitor spending. Keep credit limits low to avoid temptation to overspend.
Stay STD safe
You can be liable for your partner's debts as well as your own - what I call sexually transmitted debts.
When living together and/or sharing finances, you should both know who spends what, and require both signatures for new debts or large withdrawals from joint accounts.
Don't sacrifice for love
Financial independence so Keep finances separate wherever possible, such as individual bank accounts. Contribute into a joint account for shared living expenses.
Master taxes
Claim your full entitlements - it's your money after all.
Start investing now
The earlier you begin investing, the longer those investments have to grow in value and for compound earnings to build wealth.
Get into property
Use savings, the bank of mum and dad, buy jointly with a sibling, first home buyer incentives - whatever it takes to get into the market. It needn't be your home; consider an investment property somewhere cheaper. Look for growth potential over appearance.
Insurance favours youth
Premiums are generally cheaper with fewer exclusions and better coverage for younger people.
Lock-in these favourable conditions now for use later in life.
Don't neglect super
Poor set-up from the outset limits earning capacity over your working life. Limited inputs mean lost opportunities to tweak investments and improve performance. And those lost earnings keep compounding as the years pass.
Have a savings and investment plan
A comprehensive view over your money, financial goals and path to achieving them, this plan grows with you – keeping you focused on your current incomings and outgoings, and future aspirations.
Maintain an emergency fund
Redundancy, accidents, illness, relationship breakdowns and natural disasters are part of life.
Without a readily accessible cash stash, could you survive a crisis?
Get good advice
Good advice should be tailored to you and come from qualified financial advisors and accountants. Their costs typically more than offset mistakes avoided, taxes minimised and opportunities embraced, and they're usually tax deductible.
Set good habits now
Good money habits will work for you throughout your life. The longer they're in place, the easier they are to maintain.
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