There is no better way to start 2021 than with some New Year finance tips and tricks! When it comes to everyday finances many of us have been left in the dark, struggling to understand all things money related. Effie Zahos is one of Australia’s leading personal finance commentators. As editor of Money, Australia’s longest running personal finance magazine, she has a knack for making money matters simple. The marvellous woman herself sat down exclusively with Sydney Observer, to help women in particular gain control of their financial position.
“One in three Aussie women retire with no superannuation, leaving them facing poverty. As the mother of a teenage daughter, I want to equip women to take control of their finances. In my upcoming book, I tackle each stage in life, from getting your first job and falling in (and out) of love and starting a family, to planning for those golden years. So here are three of my all-time classic money tips.”
- Automate your savings and start as soon as possible. If you started saving from the age of 25, you would still have more than someone who started at 35 and saved until they were 65. Of course, the return plays a big part in who comes out in front. This assumes a 7% annual return, but I love this calculation from JP Morgan’s 2014 retirement guide because most people’s response to this statement is “no way that can’t be for real!” Interest on interest is pretty damn good.
- Love thy super. You may not agree with it. You may hate it. You may not put a cent towards it, but that doesn’t mean you shouldn’t be engaged with it. Just like a bank account, it is your money and as far as wealth strategies go it’s still one of the best ones out there. It’s a crime not to check if your money is in a dud super fund.
- Own your financial status. Be proud of what you have achieved and never compare yourself to ‘the Jones’. The grass may be greener on the other side but there’s a very good chance it’s fake.