It seems we are always looking for money-saving tips. No doubt you would have heard advice like ‘start a budget’ or ‘don’t overspend on unnecessary items’.

But these concepts can be vague and mean different things to different people. To help find a way to make your finances work for you, take a look at our teams’ seven money-saving tips!

1. Pay yourself first

To avoid the financial over-indulgence which we can all be guilty of, set aside money before you have the temptation to spend it.

Make it a habit to regularly set aside a portion of your income and before you know it, a tidy sum will have accumulated that can be directed into strategic investment options.

2. Invest for growth

Over the longer term, investments like shares tend to give a better overall return than cash investments, but they are generally more volatile and can test your personal fortitude for risk. Choose investments that have a risk exposure that you are comfortable with.

3. Too good to be true

If it sounds too good to be true, it probably is. Steer clear of tax-driven investments with unrealistically high stated returns as they may be more dangerous than they seem. It is not worth risking your hard-earned money to take shortcuts.

4. Invest tax effectively

Money invested in Australian shares or managed Australian share funds could earn you imputation or franking credits. Depending on your marginal tax rate, these may reduce your income tax paid on any dividends or can potentially come straight back to you as tax refunds.

Making investments here may be better suited to you as it offers a bonus at tax time.


5. Make the most of your super

Superannuation is the most tax-effective form of retirement savings for most people. Check with your employer about the possibility of undertaking a salary sacrificing strategy. This involves making additional super contributions directly from your pre-tax salary.

Therefore, your super will increase and, because of the concessional rate of tax that applies to super, you will pay less in tax.


6. Spread your risk

Don’t pool all your (investment) eggs in one basket! Spread the areas in which you are spending your money. Try mixing it up with some shares and property, fixed interest and cash. This diversified approach offers some protection in case one investment begins to decline in value.

However, you should never make an investment without seeking the right advice first. Our team of investment specialists can help guide you through your investment decisions and put you on the right track to boost your savings.


7. Just ask!

Often it pays to hear the advice of industry professionals, and an objective third party who you can be sure has your best interests at heart.

The team at Collective Financial Partners want to see your savings grow so you can secure your financial future.

Contact our team for an obligation free initial consultation and find out how we can help you develop a financial strategy to support your future goals.



General Advice Disclaimer:

This information has been provided as general advice. We have not considered your financial circumstances, needs or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication.