Most people have the impression that a savings plan implies making important changes and giving up on the most agreeable things in life. Still, this is not always the case as it’s about understanding people’s different perceptions. Saving money doesn’t have to come with big sacrifices, and all you need to do is to prioritize. A simple lifestyle is often much more satisfying than an extravagant existence because it offers people a lot of inner composure.
Most Australians pay more than $50 each month in transaction fees, and these outlays can be easily avoided when you’re leading a simple life. Keep your money in the bank and try to withdraw a larger amount once, not ten times a month.
A recent study carried on by the UHY Haines Norton Chartered Accountants, highlighted that the earners with low and middle incomes, are in a convenient position to save money, considering the tax obligations. The study has shown that a single, unmarried Australian, with a salary of $24,141 can avoid paying heavy tax loads, these being at the third lowest level on the globe, along with the United Arab Emirates and Japan. Nevertheless, big income earners with salaries above $193,000 will have to support the tax burden. These wealthy individuals are situated on the 11th place, as the highest tax earners from the 25 countries that participated in the survey.
What is even more interesting is many Australians are faced with the high cost of living in big metropolises, like Melbourne and Sydney, as these are amid the world’s most expensive cities to reside in. Considering all these financial distresses, it is a real challenge to reduce the expenses, and really save on tax breaks.
Below are some simple living tips that can may an Aussie’s life better.
Manage your income responsibly
If you are on a shoestring budget, you might find it difficult to keep up to date with your household expenses, not to mention emergency situations. In this case, it is advisable to create a monthly budget, and try to control the cost in certain areas. Likewise, if you struggle each month to cover your needs, you should not hesitate to ask your family and friends for help, as they may be able to offer support until you get back on your feet.
Keep banking plain and manageable
Banking does not necessarily have to be difficult, and the baking situation gets complicated if you don’t responsibly control your transactions and supervise all your accounts; by not being attentive you might lose money and not even notice. For instance, if you have to pay the bills, you should create a special transaction’s account, which you would use for this purpose only.
Adhere to more economical habits
Generally, Australians adore spending money on households needs, housing, and mainly on lavish cars. In 2012, Money Smart conducted a survey and highlighted that Australians spent approximately $80 billion on cars in 12 months in comparison with $2.2 billion, on public transportation. Do something different from the rest of the country and remember frugality when spending.
Start saving right now!
You should get used to putting some money aside as often you can, because a saving habit can bring you a small fortune, especially if you deposit at least 10% of your income in the bank. Still, you must ensure that you compare the terms and conditions, interest rates of different banks, and analyze the bank brochures, as well as official websites for certified information on how to increase your earnings through term deposits and high interest accounts.
By following these simple tips, you can positively change your future and live your best life now.