(03) 9020 2905Noooo! Where did 2013 go? Say it ain’t over! Can we just rewind and replay a little bit of this year first?
Equity markets stayed on the boil, property markets came out of their slumber and interest rates fell further – the last being great for homeowners, such as most Gen Xers, not so great for savers.
The last two years have been right peachy, from an investment perspective.
But 2014 should be the year that Xers start treating their finances like a business. A profitable business.
First should be to give your suppliers a shakedown. Check your utilities (gas, electricity and phone) and find out if you’re getting a fair deal. This can largely be done online. Then check your car and home insurances.
Include your mortgage. Banks got into a competition frenzy in 2013, with bigger discounts being offered to new customers and “retention” discounts for those threatening to walk. Check with a mortgage broker to see if you’re deal is competitive.
Second has to be to expanding your investments. Investing should be a constant part of your budget. You’ve got to invest at least a little every year – direct shares, managed funds or property – in order to get ahead.
Third, show your super a little loving. Yes, the rules are forever changing, but super will always have lower tax than personal investments.
Start a salary sacrifice plan. It doesn’t have to be much, but 20-30 years of snowballing will turn it into something worthwhile. Also, check your super investments andconsider if you should take a little extra risk.
Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and principal adviser with Castellan Financial Consulting.