Everyone has financial goals whether they are as short as saving for a weekend trip to increasing your super balance. By changing your spending habits and noticing where your money is going you may be able to prevent unnecessary spending.


1. Increasing your super balances by making contributions in various ways

You are able to increase your super balances through a number of ways. Pre-tax super contributions, known as salary sacrifice or salary packaging, occurs when an employer pays part of your pre-tax pay into your super account.

You are also able to make non-concessional super contribution after tax. This is money taken from your savings or income and then transferred to your super fund where they will not be taxed again.

If you are earning less than $52,697 per year before tax you could be eligible for a co-contribution from the government.

You are also able to increase your super balance if you make the decision to downsize your home after owning it for more than 10 years.


2. Pay off your debts faster, which will reduce the interest paid

To begin paying off debt make a list of all outstanding balances, interest rates, minimum payments and due dates.

By making payments on time you will avoid paying extra interest and keep your credit score healthy. To avoid missing the due date you can set up a direct debit or automatic transfer for the day after your pay goes in or set a reminder in your calendar. If you are able to make higher repayments, you will be able to pay off the debt quicker and save money on interest charges and the overall amount paid back.

If you own multiple credit cards cut back where possible and pay off one card at a time. During this time make sure the minimum repayments of all cards are maintained and each card is cancelled after it has been paid off.

To avoid overspending on your credit card contact your provider to reduce your credit limit or consider getting a better deal with a lower interest rate.


3. Increase your savings plan to be able to buy those assets sooner or help fund for personal reasons

Begin by setting a savings goal by working out how much you would like to save, and how long it will take to reach this goal. Make sure the goal is clear so you can observe your usual expenses and cut back where you can. Start this process as soon as you can and stick to the plan.

After you have observed your spending habits set a realistic budget, this will keep you on track. You can review your progress overtime and make changes as you are reaching your goal. 



The processes explained above can be incorporated into creating a personalised budget action plan.


Calculating expenses

Track your spending’s and expenses by recording your spending every day for a period of time to determine how much you are spending, and where you are spending. Make sure to cover the weeks or months which have more expenses as this will show how your money is going out.

At the end of your recording period look at your transactions and see where you can save by separating wants from needs. From this observation you can set a realistic limit to prevent overspending.


Determine your income

Record your income to determine how much, how often and when money is coming in. This list will need to include wages, income from investments, pension, and government benefits.


Set saving and payoff goals

To set savings and payoff goals you will need to calculate how much money you need to reach these goals and determine how long it will take you to reach this number.


Record spending and track progress

To reach these goals you will need an understanding of where your money actually goes to cut off unnecessary expenses. By knowing where your money is going can begin the process of cutting back where possible.

Keeping track of your spending’s using phone apps, looking at statements and receipts, and writing it down will show where your money is going. After recording your spending’s for a period of time you will be able to notice where you can save, separate your needs from wants, and set limits and reminders.


Be realistic

When determining what expenses to cut out be realistic, and ensure your goal is not impossible to achieve.

Download our FREE budget planner to help get you started.

If you require more assistance please contact us to book an appointment.

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