Money management tips

We’d like you to have the most current, comprehensive assistance you can when planning your budget. Here are some tips to get you started.

• Prepare a budget, taking into account all living costs and repayment amounts you have to make. This is the most important thing to do before you start to spend any money. You can use this budget planner.
• Plan gift buying ahead of time. You will often find suitable gifts at lower prices during sales and you can avoid the rush before holiday periods such as Christmas time.
• Plan buying a house one or two years beforehand. This will enable you to investigate the most suitable sources of finance and arrange to meet requirements such as a history of saving with a particular institution.
• Before lodging an insurance claim for the cost of repairing damage to your car, check for a future loss of no claim bonus. The insurance payout you receive could be more than offset by the loss in your no claim bonus.
• Investigate if you can pay insurance premiums monthly instead of annually without incurring a penalty. It should be easier to pay a small amount each month rather than a large amount once a year.
• Don’t rely on minimum payments for credit cards, as interest is compounding, meaning you pay interest on your interest. If you do use credit, check your budget and ensure that you can afford to pay it back without incurring too much interest.
• Be aware of interest free periods on items. For instance, is it only interest free if you pay it off in time? If you don’t pay in time the interest may be applied and you’ll be paying higher rates, such as a credit card with compounding interest.
• If a credit union or similar organisation is involved, identify if any special group arrangements with insurance companies exist which allow members to buy home, contents or life insurance at a discount.
• If you buy a mobile phone, find out if you are committed to a contract—be aware of this and any related disconnection fees you may have to pay if the contracted amounts are not paid.

Disclaimer: This information is of a general nature only and is not intended to be legal advice. There may be errors and inaccuracies or the information may not be completely up-to-date. Always check the information provided before relying on it. The information relates to consumer law in New South Wales, Australia.