How to be money-wise with your finances

The impacts of the recent pandemic led to country-wide layoffs and subsequent loss of income are still being felt by many today. While it all seems to be business as usual now, the pandemic has shed light on issues in our collective ability to manage our finances effectively. If you want to avoid being left as financially vulnerable in the future, you’re not alone.

Keep in mind the following information is General Advice and is obviously not personalised for your unique needs, objectives or financial situation. Please get in touch with your advisor before taking any action on the below points so they can advise on the appropriateness of this for you.

To alleviate the burden of financial insecurity and help you practice good financial habits, here are five helpful tips on how you can be more money-wise with your finances.

1. Plan to save based on your financial situation

The first step moving forward is to take stock of your current situation and understand how much money you’re earning, how much you’re spending and how much you think you can realistically save. This is important to keep in congruence with your current financial goals, as you’ll be able to begin mapping a timeline for life events like children, buying property, expanding your business or developing an investment strategy.

2. Develop a passive income strategy

It’s said that millionaires make money in their sleep and this adage isn’t without merit. Many wealthy individuals design passive income streams to add an additional layer of financial security and flexibility. In order to compensate for reduced incomes at your workplace or business, smart investors plan by developing a passive income strategy. Activities like developing real-estate investments, stock market portfolios, retail reselling and even peer-to-peer lending are all great ways to increase your net worth.

3. Read finance news and books

By staying up to date with financial news and best practices, you’ll not only be able to access a wide pool of expertise and resources to solve your problems but also change the way you think about money.

Following the advice of experts like Morrows will help you develop wiser saving strategies and better financial habits. Additionally, your investment habits and wealth management strategies will be improved by the work or recommendation of experts who provide comprehensive investment strategies adapted to your personal risk profile. 

4. Plan for your financial future

No one can work forever, so when you decide to settle down, the way you’ve managed your money will greatly impact your lifestyle after working. With the Australian government planning to increase the age of access to Centrelink’s Age Pension to 67 by 2023, being able to draw on other financial resources is essential to guarantee quality of life in your retirement.

A great way to plan is to incorporate investment advice with a strong superannuation strategy. Australians will have increased super contributions made by their employers after 1^st July 2021. The amount of money in contributions made by individuals charged under the minimum tax of 15% is also set to increase, meaning there’s never been a better time to invest in your super.

5. Getting financial advice

If you’re still unsure about how to get smarter with your money, or what your first move should be, we understand. Many individuals and businesses alike have the right habits in place but don’t know which move to make first. Getting expert financial advice from organisations like Morrows will provide you with a range of financial services such as super planning and wealth management with teams that have years of professional experience.

If you have any questions or would like to see how we can help you become smarter with your money, get in contact with us today.