Financial and Savings Advice for Young Adults

The days of living week to week should be a thing of the past! Blowing all your money on a big night out might be fun, but you’re really shooting yourself in the foot for that trip overseas or sexy new car you've been eyeing off. In an effort to help your dreams come true, we’re offering some free financial advice, so students and those new on the workforce can build themselves a nice little nest egg.

Superannuation - why it’s amazing.

Australia has mandatory superannuation because its good for workers and it’s good for investment. We have a minimum contribution rate (how little you have to give) at 9% of your total pay. As workers, we can opt to make greater contributions to our super fund, increasing our super to 12% can dramatically increase the money left for retirement. Also, you can make a voluntary after-tax contribution could boost your super by 50c for every dollar you add each year with the Government’s co-contribution scheme. An extra $500 in your super each year if you earn under $47,000 a year? Free Money? Yes please!

Get insurance - seriously!

To us, insurance seems like a wank! We continually find ways we cannot justify paying money for something that we can’t see, though young people find themselves needing car and health insurance more frequently than ever. There are even specialised products designed for renters and share houses, so have a peruse and find which is best for you. There are some great insurance services providers for young people, so try iSelect or Lifebroker for financial and insurance advice.

Understand your tax

Understand how much tax you pay and when your tax returns are due. While you can cheaply get your tax return done by yourself, sometimes it’s best to get some advice for a tax agent or accountant. They know what you can claim, how to cut down your expenses and avoiding tax you don’t have to pay! Who pays more tax! There’s an important difference with tax you should be aware of. Tax evasion is when you dodge tax you should be paying. Tax avoidance is taking measures to avoid tax you SHOULDN’T have to pay, your accountant will know the difference.

You’ve got some excellent free advice, but you should always check with a consultant such as LFS Legal and see which superannuation, insurance and tax products suit your situation, so they can tailor a solution that fits your needs.

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