They say money can’t buy happiness, but life sure is a little less stressful when you have your finances under control. And with over 66% of Aussies under financial stress, we could all do with a little helping hand. Enter: AMP's Deputy Chief Economist Diana Mousina. An expert in money matters, Mousina analyses economic statistics and moves in financial markets to help us all have a better understanding of what to do with our dollars.
Ready to give your savings a boost and clean up your finances?
Here are Mousina’s top tips and tricks to smash those saving goals and avoid a fit of fear every time you check your bank balance.
Define Comfortable
Your answer to this one is probably going to be different to your bestie, sibling or colleague’s. Everyone has different relationships with money, different incomes and different saving goals, so before you set yourself a budget, define what ‘comfortable’ looks like for you.
Is it about not feeling guilty about buying yourself a daily little treat? Paying your bills on time? Or buying that nice olive oil from Harris Farm? The secret is to be optimistic and realistic.
Goal Setting Is Key
We get it. The thought of saving enough moolah for a house deposit, wedding or Euro summer can be a little overwhelming. To make these huge figures feel achievable, Mousina recommends aiming to put a chunk of your weekly, fortnightly or monthly salary aside every pay day.
Eventually, with a little help of compound interest, it may come to your pleasant surprise that these long-term goals become within reach. Unsure how much to set aside? AMP’s budget planner calculator can help you get a better grasp of your income and expenses.
Get The Intel On Investing
Don't know where to start with investing? Mousina suggests starting by knowing where your risks lie. There are multiple areas you can invest in both outside and inside of superannuation and plenty of resources around to help you get clued up on exactly what approach is best suited for you.
AMP has a load of savvy tools and tips on their website, so we recommend hitting them up first for a bit of a scroll.
Keep Taxes Top Of Mind
A word to the wise, if you’re a freelancer, sole trader, contractor, own investment assets or have multiple streams of income, do yourself a favour and talk to an accountant. Even if you have a full-time nine-to-five, Mousina is a strong believer that only good comes from chatting with the pros about all things tax-related.
From what you can and can’t deduct, and the strategies you can implement to get the most out of your tax return, these legends are the key to saving you and your bank in the long run.
Read The News
While reading through financial reports isn’t for everyone, hear us out: finance can be fun, if you follow the right people (because there is still plenty of fake news and scams on social media). Mousina’s secret is incorporating little snippets of easy-to-digest economics, investing and finance info through the format of podcasts, books such as Girls That Invest or Mousina's economics teams Instagram account like @econosights and their TikTok. AMP’s Insights Hub also has loads of digestible info on all things money.
Stack Up Those Points
Saving for a sojourn? Holidays can be as cheap as chips if you have enough points. There are all sorts of loyalty schemes and frequent flyer programs available, with single credit card sign-ups earning you up to 150,000 points in one hit. But as tempting as it is, make sure you read the fine print. These cards often come with higher interest rates, so will need to be paid off each month to avoid the extra costs.
Mousina suggests only utilising buy-now-pay-later services if you can be confident you’re not going to end up paying interest. So although with a girl math mindset putting those jeans on Afterpay essentially means you got them for free, be mindful about the money you'll have in the bank at the end of the month.
Hack Your Holiday
Sure, using your debit card or credit card overseas may be convenient, but there’s a pretty big chance you’ll be hit with eye-watering currency conversion fees and ATM charges. This is why Mousina recommends spending a little bit of time researching the most appropriate international money cards for your trip before you jet off. In the long run, this easy action can save you hundreds.
Compare And Contrast
Being an adult at times quite frankly is not what it was talked up to be. A key reason for this being that it automatically means you are now the one responsible for paying the bills. Fortunately, as pointed out by Mousina, it also means having the freedom to choose the provider that’s going to give you the best deal. And thanks to the many comparison sites now circulating the web, it doesn’t have to be a mind-numbing task. Jump online and have a squiz at the other options out there—switching could end up saving your hundreds each year and it can be as easy as a phone call.
For more tips just like Mousina’s and for additional info on all things finance, AMP have got your back. Stop wasting time worrying about the cost of your morning coffee and get clued up on how you can have more in the bank to fund the things you love here.
Editor’s note: This article is sponsored by AMP and proudly endorsed by The Urban List. To find out more about who we work with and why, read our editorial policy here.
Image Credit: Urban List.