This post is brought to you by VedaO
ne of the the worst things about being a grown up is having to deal with all the crap that comes with being a money earner. It’s not enough to just rock up to work, take your salary, pop 10% in the bank and hope for the best. The money climate in Australia is constantly changing and it’s getting more and more time consuming dealing with all the different facets of being a functional, bill paying Aussie. It’s really annoying and I know I’d much rather spend my time on the couch crocheting with a cup of tea but I’m not getting any younger and it’s important to stay on top of money issues that are super easy to avoid. I’ve teamed up with Veda this month for their #KnowYourVedaScore campaign to discuss our money problems – we all have them, it’s just a matter of admitting what they are and putting steps in place to fix them.
As tempting as it can be to go and hide under a rock and cry until it all goes away, it’s much better to get yourself sorted out as soon as possible so you’re making the most of your money and (here’s that phrase that everyone dreads…) planning for your future. Here are 5 money problems you need to stop avoiding.
Even though Australian employers are required by law to pay superannuation for their employees, you can’t rely on your employer to prioritise your super – they’ll do the bare minimum they’re required to do, which is fine because your super is not their problem. Most money experts recommend topping up your super, especially if you’re self employed or a business owner. It doesn’t take long to to roll your super in to one account and add 5% of your pay to it each month. It’s the smallest thing you can do now to set yourself up for your future but the hard part is getting it all set up. It will only take a few hours so book a time to do it this week and just get it done. 70 year old you will thank you for it.
Your HECS Debt
If you have a HECS debt, don’t delay in paying it off. The sooner you get it paid off, the less interest you’ll pay. HECS debts don’t disappear – you’ll have to pay them eventually and it might as well be sooner rather than later. Note: Depending on your HECS debt and credit history, if you have a credit card debt, pay that off first. Banks usually charge a lot more interest than the Government on loans so make sure you pay off the highest interest loan first.
Your credit score
According to Veda, 92% of Australians know they have a credit score but they don’t know how they can access it. Most people find out they have a bad credit score when they’re sitting at the bank applying for a loan and it gets denied because the bank has checked their credit history and discovered they have a terrible rating. We all want a good credit deal and awareness is the key in getting more bang for your buck from lenders. If you know your credit score, it puts you in a far better position to be able to seek out better deals and apply for loans without fear of getting rejected. It also gives you the power to improve your credit score and get on top of your finances.
Your credit card debt
Australia’s credit card bill is sitting at about $45 billion dollars at the moment which is an enormous amount for our comparatively small population. If you have a credit card debt, it will never get smaller if you only ever pay the minimum on your credit card every month. You have to make serious, regular payments to put a dent in your credit card debt. It’s much better to live off baked beans for a year and nail that debt, than constantly pay off the minimum each month and never get anywhere with paying it off.
Your terrible spending habits
Write down everything you buy for an entire month. Everything – coffees, clothing, lunches out, entertainment and essentials. Then at the end of the month, go through your report and see where you’re wasting money. If you want to focus on depleting a debt and improving your credit score you might need to do without a few things. For example being blonde is incredibly expensive – it can cost several hundred dollars a month. If you switch back to your natural hair colour for a few years you could save yourself a few thousand dollars. The same thing applies with unnecessary technology updates. If your current phone works and does everything you need it to do, maybe hold off on upgrading it until you’re in a more stable financial position.
While we’re on the topic of finances, the awesome people at Veda are offering a $200 EFTPOS gift card (that you can use pretty much anywhere) to one lucky Smaggle reader. All you have to do to win is…
- Visit https://www.veda.com.au
- Leave a comment on this post telling me which money problems you need to stop avoiding
I’ll start… I need to implement a plan to for my superannuation. I have all my super rolled I just need to be a grown up and start putting more money in the account. I might have to back off on the fancy wine for a while.
What’s your number 1 money problem you’ve been avoiding? How can you get it sorted?
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