Life can get pretty busy, and it’s easy to overlook financial essentials. Let’s have a look at some common money mistakes — and the solutions.
Money mistake #1: Not taking insurance seriously
By the time people have been in the workforce for a few years, they’ve usually accumulated some financial assets, and perhaps a family that they need to protect.
If you were sick or injured, how would you pay the bills?
And if you passed away, would your family be taken care of?
The solution – take some easy steps to properly protect yourself
To make sure you’re adequately protected a good first step is to check your super account to see what insurance you hold there. You can change this amount to better safeguard your assets and your loved ones, or you can apply for new cover too.
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Holding insurance in super generally means less health checks since eligible members receive automatic cover. It could also be more cost effective as the fees are paid from your super balance rather than your take-home pay.
Insurance through super is often cheaper as insurance policies can be bought in bulk, which is generally cheaper than insuring yourself individually.
Money mistake #2: Not taking advantage of tax incentives
You may be a while off retirement, but it’s not too early to be thinking seriously about your super balance.
Super is generally taxed at a lower rate than other investments or savings and understanding how tax incentives work is important so you’re not paying more than necessary.
The solution – make your money work for you (not the tax man)
Putting extra into your super now means you’ll have years to benefit from tax incentives linked to salary sacrificing, after-tax contributions and spouse contributions.
Even small amounts can take the pressure off accumulating a comfortable balance later in life.
Not sure what tax incentives you should be making the most of? Talk to us and we can work out how much you could save.
Money mistake #3: Not being confident enough to invest
Being financially confident and understanding how investment markets work can really change your financial future. If you’re not sure where to start, the good news is you don’t have to dive right in.
The solution – learn the investment fundamentals through your super.
Start your investment education by looking at how your super’s set up. Learn how the different investment options are constructed and how the different growth and defensive assets are designed to suit a variety of risk tolerances and expected investment returns.
You’re in control of your super, and by learning more, you can build up your investment knowledge and spark a passion for wealth creation.
Service you expect. Care you deserve.
When you’re a CareSuper member, it’s with you every step of the way. For more on how CareSuper can help you get even more out of your super, get in touch — they can’t wait to hear from you.