Latte or Holiday? The Choice is Yours!
Well, it’s that time of year again!
It seems that the end of financial year tends to creep up on us faster and faster each year.
For me, as a financial adviser, it’s my least favourite time of year – not because of tax bills or boxes of receipts (that’s your accountants problem), but because it’s the time of year that everyone spends their time looking backwards at what has already happened, not forward, to the future.
Of course, looking back is an essential step to reducing your tax expense, and potentially increasing your tax return (if you’re lucky enough to get one), but it doesn’t need to be your only focus this time of year.
You may recall last year I gave you a few tax hacks to try and reduce your tax payable (click here for a refresher).
This year, I thought it would be good to look at a couple of simple hacks to try and make the most out of financial year 2019/20:
- Stop Slurping the Savings – If possible, take a coffee to work with you, or at least reduce how many you’re buying. One coffee a day, 5 days a week is $1,303.50 a year (this doesn’t even count the weekend coffees).
- Pack a punch in your Savings by packing your lunch – this one is a no brainer – try taking your lunch to work. Usually good for the waistline, always good for the budget. A $10 lunch 5 days a week comes to $2,607 a year.
- Use it or lose it – if you have some spare cash and would love to donate it, that’s awesome, there are plenty of charities in need. Your gym isn’t one of them. If you haven’t used your gym membership or app subscriptions (Netflix, Hayu, Stan, Spotify), ditch them. On an average gym membership ($12 per week), you could save another $625.58 a year.
For the record, I am not against buying coffee or lunch, and I am guilty of overspending on these from time to time, but the numbers don’t lie!
These simple hacks can save you just over $4,500 a year to put in your back pocket, ready to either top up the emergency fund or grow the holiday account – the choice is yours!
If you want a bit more of a specific review on where you and your family can ‘find’ some extra cash, reach out to me and we can work together to break down your cashflow and make the most out of it!
After all, wouldn’t you rather a holiday over a latte?