This can seem hard, especially if you have many financial commitments, but it is not impossible. Putting part of your salary away into a savings account is not only financially savvy for those rainy days, but it can add towards whatever policies you have in place to afford a comfortable living when you have retired.
The trick is to set aside an amount that you can realistically and consistently set aside when it comes to saving. ASIC found that 52% of Aussies put aside spare change into their saving account, while 17% put their money into an account they cannot touch to help them reach their saving goal.
This also means that you will have to cut back on some of your luxury expenses, but not to the point where you reduce yourself to toast and beans to survive. Once you have set an amount that you believe you can maintain you can have your savings automated to help you stick to your savings plan.
Have a policy in place
Whether it is a life insurance policy or a policy through your superannuation fund it is vital that you have a policy in place. It is usually best to get a policy in place while you are still young and healthy because it is more affordable, but even if you have surpassed this stage you can still get a life insurance policy that is within your financial reach.
For example, a 35-year-old Non-smoker who wants to take out a policy worth $500,000 will pay anything between $20-$30 dollars depending on their gender. Comparing can go a long way in the efforts to get the best value for your money, and it can also help you save in the process.
Find out how much you will need to retire comfortably
You are an individual with individual needs that cannot be compared to the next person. Therefore, going to insurers and brokers can help you get expert advice to find something that is within your financial reach and help you retire comfortably. According to ASFA, an average Australian couple will need approximately $640,000 to fund a comfy retirement. The amount you will need will differ on various factors and expenses that you will face when you retire. Insurers and brokers have been in the industry long enough to ensure you get something that will be tailor-made for you.
Start looking for ways to invest your money
Finding ways to invest your money is a good way to have something that will continue to grow long after your salary has stopped coming through. The number one asset that most Australians strive for as an investment in property. Whether that is investing in your own home and slowly renovating it to increase its value over the years until the time comes to sell or purchasing other property with the sole purpose of renting or selling it in the short term.
However, not everyone might have the finances of investing money in this way. Therefore, find a reliable niche that you know that will help you grow your money overtime.