Switching careers, starting a business, studying, and travelling the globe are what we value most and prioritise. We choose to spend our money living in the moment and accumulating experiences, rather than planning for the future. As a result, maintaining our financial security or having solid investments like a house, a car, shares or savings can often pale in comparison to our immediate ambitions.

But dedicating a few thoughts to your financial situation is not as scary as it seems. There are multiple ways to become more financially grounded, without spending all of your spare time drowning in spreadsheets or sacrificing nights out with friends.

Superannuation

Most of us would rather hit ourselves in the face with a giant red ball than think about superannuation.

The letters come in the mail on an infuriatingly regular basis informing you of changes to your account balance. If you have changed jobs more than once, it’s also likely that you have multiple accounts with different funds and with differing balances.

If you are with more than one super fund, now is the time to merge all that money into one fund. By consolidating, or rolling over your super, you are avoiding unnecessary fees from multiple funds, and are in a better position to track how your super is growing.

To consolidate your accounts, use the ATO’s handy SuperSeeker tool to search for any lost or unclaimed super. AusFund is another way to track down unclaimed super. If you are on a break from the workforce and not receiving contributions, or planning to be overseas for an extended period, AusFund is also a great place to park your superannuation.

If you are unsure about which fund to choose, CanStar compare and rate the best super funds including options, services, and performance based on your age bracket and super balance. Industry Super and ASIC Money Smart are also good places to start.

While your employer contributes an amount from your salary towards your super, making additional contributions (for example, an extra $20 per week) can quickly accumulate and really pay off in the long run.

The government also makes co-contributions from time to time to help save for your retirement. This scheme applies to low and middle-income earners who make personal contributions to superannuation. In this situation, the government contributes up to $500 per year. The amount the government contributes to your super fund depends on how much you contribute and your annual income.

Budgeting And Saving

Budgeting and saving are a lot like the administrative component of your study life or job – painful but necessary.

Saving is a trial for everyone. The voice in your head relentlessly pesters you “I need to save for a house…no wait…a car…. no…a holiday.” This creates conflicting priorities and means that the easiest option is usually just to continue with your original spending habits.

Setting a budget and savings goal is essential to acquiring important assets, having the freedom to do what you want with your life, and is also crucial for emergency situations. The best way to get started is to set a weekly, monthly or yearly goal. You may want to save 75% of your pay packet after expenses like rent, utilities, petrol and social activities. Or you may commit $100 per week to your savings account. Another highly effective method of saving is to dig out your good old piggy bank. Even if you’re just collecting some loose change, it all adds up!

Save a lot, quickly

One of the best ways to save a lot quickly is to commit to paying off your monthly expenses and splitting the remaining amount in half (one-half for everyday expenses like sales, petrol, transport, lunches and drinks; the second-half for your savings account). It does mean paring back your monthly ‘unconscious’ spending on ‘want’ rather than ‘need’ items but in the long run can get you on the next adventure holiday months sooner and without needing to go into serious credit.

Say you have approximately $500 left over each pay day after expenses. If you set up an automatic transfer of $250 to a high-interest savings account, you will be making regular and consistent savings of $500 per month (assuming you are paid on a fortnightly basis) which adds up to $6,000 per year.

Save a moderate amount, consistently

If you are not in a position to save a large lump sum every month, make sure that you set a realistic saving goal and stick with it. No matter what your salary, you can aim to save 10% of that fortnightly income. Once it is in your savings account, make a rule not to touch it unless it is for emergencies.

Investments

You may feel like you have no idea what you are doing with your money, but it really is never too early to start investing, whether in the property market or some low-risk shares.

https://www.youtube.com/watch?v=ugB8uvh1heI

Consider making an appointment with a financial adviser to explore options based on your income and circumstances and for guidance on how to start saving for a deposit on a house or apartment.

If the prospect of investing in stocks and shares makes you jumpy, consider an alternative and lower risk option and set up a managed fund.

With time and patience, any goal is achievable.

Conclusion

Achieving financial stability in your 20s and 30s takes time, patience and dedication. If you regularly evaluate the above areas, it eventually becomes easier to manage and you will start to see real rewards for your efforts.

Further Information

Feeling overwhelmed?

The Australian Securities and Investments Commission (ASIC) has a handy ‘Money Health Check’ Quiz to help track your overall financial health.

Of course, you wanted it when it was free! In fact, you revelled in the novelty of having top end reading materials during your morning train commute. You haughtily quoted the latest snippets of news on business, finance, investment and politics to your colleagues on your morning coffee run.

But then you forgot that your free trial period only lasted for one month …

Your golden age of pseudo-intellectualism abruptly ended, leaving a crestfallen you with barely enough credit to purchase a compulsory bottle of Chandon for your friend’s 30th birthday this weekend.

The Sting Of Unexpected Subscription Fees

Nobody has the financial capacity to spend their salary on recurring and unused subscriptions to magazines or other apps and services such as Spotify, Netflix, iTunes music, Evernote or gym memberships. Especially when a lot of these charges can be old subscriptions you have forgotten about and which occur without your knowledge.

But checking your credit card bills for monthly accumulating charges is a painful and time-consuming exercise in patience and persistence. The investment of time and energy necessary to chase down and cancel $12 amounts can seem too high. But over time these amounts can add up to $500 over per year.

Luckily somebody in Silicon Valley just automated your worst nightmare. A fancy new app scans your online statements to find paid subscriptions and recurring bills.

All you have to do is:

1. Sign up
2. Enter your bank or credit card institution. All major Australian banks such as ING Direct, St George, Commonwealth Bank, Westpac as well as credit cards such as 28 Degrees Mastercard are supported.
3. That’s it.

TrueBill sends you information on you subscriptions so you know who is charging you every month. A built in one-click cancellation system also allows you to instantly cancel unwanted subscriptions. The best part is that your statements are monitored every month so that any price hikes or unexpected fee changes are flagged and sent to you in a handy report.

Time to start putting that extra cash aside for your next escape!

Further Information

To sign up for free, visit the TrueBill website.

You probably set yourself some pretty ambitious goals earlier this year:

• Find a new job (one that challenges and interests you – hopefully it pays better than your current role);
• Lock in some adventure travel plans (or, at the very least, plan more weekend mini-breaks);
• Spend less money on nights out, gigs and festivals;
• Spend more money on sensible life planning (like saving for a car or your first home).

But it’s already 1/4 of the way into the new year, and you find yourself still reading the same book you started over Christmas.

Half your time is spent living vicariously through Facebook, which drip feeds you images of your friends who are embarking on Attenborough-esque Galapagos Island adventures. Their updates – involving 1am evacuations with life vests after their boat unexpectedly hits rocks and floods their cabin – make you sick with longing that you were chasing life and bobbing on a life boat in the middle of the Pacific Ocean.

Because, ultimately, the perspective offered by the narrow beam of your flashlight when travelling always trumps the dim existential illumination provided by your work cubicle.

So take control. Regroup – and book those cheap flights before the year gets away from you!

1. Travel At The Right Time

When you choose to travel heavily influences the price you pay for flights.

If you decide to travel during peak season, for example, you can commit yourself to paying double the price you would pay during off-season.

2. Subscribe To Alerts

Email alerts from your preferred airlines will tell you when sales and hot deals are on.

Keep your eyes peeled to grab special deals before anyone else.

3. Book Ahead

As a general rule, booking between
6 weeks to 8 weeks before your planned departed date is ideal for securing the best and cheapest flight prices.

4. Price Comparisons

Check a range of sites to make sure you are getting the best deal on your flights.

The below flight price comparison websites are a good place to start:

• Expedia
• LastMinute
• Webjet
• Skyscanner
• I Want That Flight
• Zuji
• Kayak

5. Fly Mid-Week

This is usually the quietest and cheapest time to travel.

Fridays and Sundays are generally the most expensive days to fly. Avoid booking on these days wherever possible.

6. Go Incognito

Use a private browser (such as Google Chrome using an incognito window) when searching for flights.

This prevents airlines from tracking your browsing history on Monday, for example, and jacking up prices for the flights you are interested in purchasing when you come back to buy your tickets on Tuesday.

7. Pay Now, Save Later

Never ever think that you can manage your overseas trip without travel insurance.

You could need insurance for any number of scenarios, including:

• an unexpected cyclone that leaves you stranded in Fiji and needing to change flights and travel plans; or
• a violent sandstorm in the Namibian desert which destroys your digital SLR camera; or
• your suitcase, including your laptop, being stolen in Bangkok; or
• a tree coming out of nowhere, while snow boarding in Whistler, which leaves you seriously injured and needing to be medically evacuated out of Canada.

Travel insurance is an essential safety net for the myriad of reasons you cannot foreshadow running into while travelling. Use the cash you save on cheap flights to buy a comprehensive travel insurance policy: the few hundred dollars you invest here can save you thousands in the long run.

Further Information

For some of the cheapest and most comprehensive travel insurance visit:

• World Care Travel Insurance

What countries are on your ‘must visit list’ this year? If you had the money to book an overseas holiday departing next week, would you drop everything and go? Let us know in the comments section below!