Anyone can live a life of luxury with the right plan.
DO YOU dream of designer handbags when you’re carrying a knock-off purse? Here are 10 helpful money tips to get you on your way to living a life of luxury.
1. CONSOLIDATE YOUR SUPER ACCOUNTS
Now is the time to put a plan into place. Source: Getty Images
You might be a bright young thing now, but later on, you won’t be able to enjoy a life of luxury purely funded by your Aged Pension, warns Lisa Barber, financial adviser at Hillross. Now is the time to put a plan into place for your retirement nest egg to help you maintain the kind of life you’d like to be accustomed.
“Many people have a disconnect with their super — they see it as something that happens to them, not something they control which can lead them to their lifestyle dreams,” says Barber.
“Make sure you have no lost super accounts lurking in your past and think about consolidating your super accounts so you’re not paying multiple sets of fees and charges.”
2. MAKE EXTRA CONTRIBUTIONS TO YOUR SUPER
Consider buying that pair of stilettos next month and instead, put the money into your super to give it an extra boost, so you’ll be wearing designer shoes well into your golden years.
“Making contributions from pre-tax salary through salary sacrifice means you can take advantage of super’s concessional contributions tax rate,” advises Barber. “Consider your timeline — when would you like it, how much you need to deliver on what’s important to you, what you want to do with that asset and whose name should it be in?”
3. EXAMINE YOUR ASSET STRUCTURE
The ideal asset mix will depend on your life stage. Source: Getty Images
Do you have assets like shares or property? Make sure that you review them at least once a year, to make sure you’re being protected from creditors and excess taxes, says Jessica Darnbrough, spokeswoman for Mortgage Choice Financial Planning.
If done effectively, asset structuring can provide tax advantages, family tax protection and the longevity of assets.
4. INVEST WISELY
Make sure you have a clear investment strategy. Source: Getty Images
Done correctly, investing in shares, property or a business can help build the cushy life that you’re dreaming of in the future. Just make sure you do the research, talk to a financial expert and always have a clear investment strategy in mind.
5. TIMESHARE A BOAT
This could be yours. Every third Saturday. Source: Supplied
Fancy cruising the harbour? Rather than paying for a boat upfront and the ongoing costs of maintenance, you can timeshare it for a fraction of the cost, suggests Chris Magnus at ARK Total Wealth.
6. CANCEL YOUR CREDIT CARD
Don’t get caught in a cycle of credit card debt. Source: Getty Images
If you’re struggling to pay off your credit card in full at the end of every month, it might be time to cut it up and switch to a debit card, advises Darnbrough. According to a recent survey, 35 per cent of Australians with a credit card owe a hefty $5,000 or more.
“Many people get stuck using a credit card because they can’t break the cycle as interest continues to accrue,” says Darnbrough.
7. SALARY PACKAGE YOUR CAR
Ask your boss if you can have a Maserati. Source: AFP
If you want to drive a flashy car one day in the future, then you might want to think about buying a used one for the time being, to avoid being hit the massive depreciation you get as soon as you leave the car lot, says Chris Magnus from Ark Total Wealth
“Then salary package the payments to make a portion of the loan repayments and the ongoing maintenance costs before tax. This can easily save a couple of thousand dollars a year,” he says.
8. FLYING HIGH
Frequent flyer points might get you into first class. Eventually. Source: News Limited
Stuck in economy class? Signing up for frequent flyer points can save thousands on a business class trip or can even be used to upgrade very cheaply, too, suggests Magnus.
9. SEPARATE YOUR ACCOUNTS
Set up direct debits to help you manage bills. Source: Supplied
Do you ever wonder where all your money went just a few days after your pay has hit your account? Calculate what your yearly bills are and divide it by your pay period, so that every time you get paid, the amount will be automatically debited from your account.
“It means that when the bills are due, you have the money set aside to pay them and you won’t need to go without food that week,” says Magnus.
10. CREATE A PLAN
Start planning for tomorrow, today. Source:Getty Images
Start planning for tomorrow, today. Source: Getty Images
It’s never too late to talk to a financial adviser who can help you create a plan for your future life of luxury and then implement it.
“Planning for tomorrow today will help to put you in good stead for the future and make sure you are able to live the life you want when the time arrives,” says Darnbrough.
