Get 2019 off to a super start

The New Year is a great time to take stock of your life and make some changes for the better. One excellent resolution is to take control of your finances. But how do you get started?

Making a resolution to get your financial situation in order is easier said than done. While it’s great to say you want to make an effort to understand your finances, how can you turn that into meaningful action? We’ve put together some tips to help you make a realistic plan and stick to it.

Resolutions, like most goals, are best when they are specific. Whether you want to boost your super before you retire, or make the most of what you have in retirement, it’s a good idea to set yourself a target so you know where to aim. Work out the financial goals you want to achieve, then break them down into realistic steps to lead you there.¹

Understand where your money goes

A great place to start is to create a budget and track your spending. A budget will help you understand the money going in and out of your household. It will help you discover whether you are spending more or less than you can afford.¹ Then, by adjusting your spending you can start putting more money towards what matters to you, whether it’s adding to your super or enjoying the life you want in retirement.

Handy online tools and apps

You can use a budget planning tool, like the one on the MoneySmart website² to work out where your money is going. It will help you list and calculate all the money that’s coming in, and going out of your accounts. There are also some handy apps you can use to track your spending, such as TrackMySPEND, Pocketbook or Wally.³ These can be useful as they let you record your spending as you go, so you can keep an accurate record of all the little things you spend your money on, from your morning coffee to your weekly grocery shop.³

Make a realistic plan

Retirement means something different to everybody. Write down some ideas about what retirement may look like for you. Then use your budget planner to estimate the annual income you’ll need to fund the lifestyle you want in retirement. You can also use the ESSSuper Lifetime Supermodeller to see how the super you have now will translate into annual income, and how long it may last. ⁴

Take the time to review of your situation. Do you still have insurance through super? If your needs have changed, maybe you should adjust your insurance cover. If you are still contributing to super, are you on track to achieve your goals? If not, you may want to explore the different ways to boost your super, from making extra salary sacrifice contributions to setting up a Working Income Stream. Depending on your fund, you may want to review your investment selection. Start by taking a look at our online Investment Risk Profiler that helps you understand what type of investor you are.

Where can you cut back?

If you want to save more, take a look at your spending habits. Is there anywhere you can cut back? Some costs are ‘needs’ that you simply can’t do without, but maybe there are some ‘wants’ that you could trim back on. Review your gas and electricity providers to see if you can get a better deal. Check out the Victorian Government’s Energy Compare website that offers a $50 incentive to compare energy providers.⁴

Think about reducing any debts you may have. Are you are still paying a mortgage? You could consider taking advantage of the new downsizing super contribution rules. And remember, not all debts are equal.⁵ A credit card is most likely the debt with the highest interest rate, so you could start by eliminating that.

We’re here to help

As you can see, there are many planning options open to you depending on your circumstances. The best thing you can do is arm yourself with reliable information and good advice before you make a major financial decision. If you have questions about your super, an ESSSuper Member Education Consultant can help. If you want more personalised financial advice, they can refer you to one of our Financial Advisers.⁶ To find out more about getting information on super and advice you can trust, take a look at our Super News article, ‘How to improve your financial literacy’.

1. New Year’s Resolutions: Set and achieve your money goals, MoneySmart
2. Budget Planner, Money Smart
3. Everything you need to know about how to budget, by Emily Berry, My Money
4. Victorian Energy Compare
5. Financial Resolutions for the New Year, Joshua Kennon, The Balance
6. ESSSuper Financial Planners are authorised representatives of Adviser Network Pty Ltd (Adviser Network). Adviser Network holds a current Australian Financial Services Licence No. 232729 and is responsible for the financial services provided to you. ESSSuper has an arrangement with Adviser Network Pty Ltd to provide financial advice to ESSSuper members. ESSSuper pays Adviser Network a fee for this service. Neither the Board, nor the Victorian Government, guarantee or endorse any recommendations made by Adviser Network, or are responsible for the advice and actions of Adviser Network.

The information contained in this article is of a general nature only. It should not be considered as a substitute for reading ESSSuper’s Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available on our website or by calling 1300 650 161.

Get 2019 off to a super start

The New Year is a great time to take stock of your life and make some changes for the better. One excellent resolution is to take control of your finances. But how do you get started?

Understand where your money goes

Handy online tools and apps

Make a realistic plan

Where can you cut back?

We’re here to help

Have you registered for Members Online?

2019 Seminar Program

Multiple super funds?

Thinking of retiring?

Do something super for your spouse.

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