Business

Saving requires common sense and discipline

Barry Leddicoat

ALTHOUGH saving money is one of the hardest things to do in today's expensive world, two simple things underpin accumulating money for the future.

Common sense and discipline are the two main things which are necessary when saving money.

Without these qualities nothing can be achieved.

The first thing people should do is to work out a budget.

Most people don't like working out a budget because it forces them to face reality.

People should look at what they spend on necessities such as food, bills and transportation and then work out what they use on discretionary spending.

What people call necessities now, not too long ago were called discretionary spends.

People buy expensive packaged meals and other luxuries which can easily be avoided and allow people to make huge savings.

Registered BAS agent and ICB associate member Lea-Anne Berryman said private health insurance, life insurance and income protection were often overlooked as being too expensive or a luxury and were often the first expenses families felt they could do without.

However, in the event of an accident or illness being adequately covered provided families with the knowledge that they wouldn't be left with mounting medical bills and other expenses in difficult times.

The best way to allow for this in a family budget was by setting up a direct debit on a weekly basis as this seems to be affordable for most families and over time was accepted as a necessary budget item.

Budgets should be reviewed regularly as situations change and having a budget that isn't relevant to your situation simply won't work.

The industry's standard advice is that everyone should put away 10% of their net earnings into medium to long-term savings.

Once people have established how much they can save, they should look at putting money in the following areas.

First of all, people should put money aside for short term needs such as telephone bills and car insurance and registration.

The money for this could be held in an everyday passbook account which offers low interest rates but easy access.

Secondly, people should put money away for the medium (three to five years) term.

This money could be placed in internet banking accounts as they offer higher interest rates but make withdrawals more difficult.

Investments for the medium to long term could go to managed funds accounts which offer high interest rates over a five to 10 year period.

Finally, long term investments for retirement should go in superannuation accounts offering high interest.

Topics:  cash investment money saving superannuation



Don’t go chasing waterfalls…find them on these drives!

BRISBANE isn’t all bright lights and city slickers.

Science Festival seriously awesome

Don't miss the World Science Festival Brisbane!

CALLING everyone who wants to see something totally cool.

Drink where the cool kids do this summer

There are a bunch of new bars open in Brisbane, make sure you're there!

CHECK out these new funky bars.

Discover Brisbane’s laneway gems

Brisbane's laneways will surprise you.

NOT all of Brisbane City is as it seems…

Top five things to experience this summer in Brisbane

Tangalooma is amazing if you're keen for a dive, kayak or swim.

THIS summer get out and explore your capital city.

Your boots are made for walking these tours

Brisbane Greeters tours are a great way to learn the local history of the city.

YOU don’t need a bike or bus for a seriously good tour of Brisbane.

Is Brisbane the new arts and culture capital?

Check out GOMA's latest exhibition - it's all about hair! GOMA 10 Ambassador Patience Hodgson visits Nervescape V 2016 by Icelandic artist Hrafnhildur Arnardóttir (aka Shoplifter), commissioned for ‘Sugar Spin: you, me, art and everything’ at the Gallery of Modern Art, Brisbane. 
Photograph: Natasha Harth, QAGOMA

THE rest of the world should be envious of this line-up!

It's time for the 2017 senior local achievement award

The NSW Seniors Festival is being held next month.

Do you know someone who would qualify?

New festival joins Quiksilver Pro party

Australian rockers the Rubens will headline the inaugural Cooly Beachfest at Queen Elizabeth Park, Coolangatta on March 18

Cooly Beachfest 2017 officially takes off

Do you know the whereabouts of wanted man: Zane Love?

A warrant has been issued for Zane Love.

Police seek help to find a man wanted on drug charges.

Local Partners

REVIEW: Under the Gun doco looks at right to bear arms

WOULD you ever carry your baby and a semi-automatic gun to the shops?

Hodges proud to be part of first channel dedicated to NRL

Justin Hodges is gearing up for his new gig on Fox League.

Footy star hopes to provide a voice for players on new NRL channel

Furious Price wants to quit I'm a Celeb after clash with Keira

Steve Price has threatened to quit the jungle.

Will camp ration clash with Keira cause Steve to call it quits?

Novel with lots of heart

The romance in A Quiet Kind of Thunder was only one of the joys of the book.

Book proves to be a gem with layers

New festival joins Quiksilver Pro party

Australian rockers the Rubens will headline the inaugural Cooly Beachfest at Queen Elizabeth Park, Coolangatta on March 18

Cooly Beachfest 2017 officially takes off

Live music: Boogie on down this weekend

Moreland & Arbuckle will be playing the Currumbin Soundlounge on Friday from 8.30pm.

Gig Guide: What's on around Tweed (Feb 23 - 27)

Bliss N Eso announce tribute show for stuntman

Bliss N Eso will play a tribute show at Coolangatta in honour of Johann Ofner. The stuntman died during the filming of the group's Friend Like You film clip earlier this year.

BLISS N Eso to play tribute show to raise funds for killed stuntman

$140k damage: landlord says property trashed, contaminated

He had what he calls "the tenants from hell"

Top 6 infrastructure projects in the Tweed for 2017

The Gold Coast Airport is getting an upgrade.

Find out what's going in the Tweed.

Submarine, buses and 3000 tyres removed in $100K clean up

The list of things removed from this property is beyond astonishing

Ready to SELL your property?

Post Your Ad Here!