Latest news with #moneyhabits
News.com.au
16 hours ago
- Business
- News.com.au
Five money matters to master before you're 30 to become richer
In your teens and 20s, you probably don't have much in the way of money and investments. Believe it or not, this works to your advantage. Fewer distractions and complexities leave more time and energy to focus on getting the basics right. While there are many steps on the path to financial wellbeing, five in particular will pave the way to your desired destination. Master these money matters before you hit the big 3-0 and you'll be 'laughing all the way to the bank'. 1. Make good money habits Help your future self by putting good money habits into place now: • Avoiding procrastination: Waiting to pay bills, lodge taxes, and chase payrises usually loses you money. • Investing ASAP: The earlier you start, the more time investments have to grow. • Upskilling: Grow your income faster with extra training and qualifications. • Being organised: Avoid late fees and interest and protect your credit rating. • Good record keeping: You can't claim tax deductions, employment and other reimbursements without proof. The longer these habits are in place, the more second nature they will become. 2. Get your foundations right There are five financial foundations needed to wealth and independence: • Emergency fund: Cash you can quickly and easily access in a crisis – e.g. a natural disaster, redundancy, relationship breakdown. • Savings and investment plan: Like a budget but more comprehensive, giving visibility over your earnings, investments, spending, and financial goals. • Insurances: Aside from under 25 drivers, personal insurances (life, income protection, trauma cover) are generally better value with no exclusions when you're young – savings you can potentially lock-in for the long term. • Superannuation: Before 30, you can afford to chase higher returns with higher risk investments because you have more time to recover any losses. You may also be eligible for government co-contributions. Be diligent if consolidating multiple super funds – you may actually be worse off by merging into a higher-fee fund or losing insurances within your super. • Estate planning: Have an up-to-date will outlining your wishes. Nominate beneficiaries within your super. Consider Power of Attorney and Guardianship in case injury or illness leaves you unable to make medical or financial decisions. Remember: everything needs a firm base to stay strong – a skyscraper, a career, a movie plot … and your finances. 3. Keep spending in check Be diligent about your spending – both where it goes and how you do it: • Where possible, use cash instead of credit – it's easier to track and doesn't accrue interest or fees. • Keep credit card limits low. • Avoid Buy Now, Pay Later schemes and payment plans, which tempt you to overspend and have hefty penalties for missed repayments. • Monitor direct debits – cancel things you don't use, and don't let them auto-renew without checking you're getting the best value. Above all, live within your means. Debts can quickly snowball. 4. Be creative about buying property While housing affordability is woeful, don't give up without exploring all possibilities. Owning property makes a huge difference to your financial future and quality of life in retirement. You just may need to think creatively to make it happen, such as: • Pooling funds: Buy jointly with parents, siblings, cousins, friends. This could be a shared home or joint investment. • 'Rentvesting': Buying in a cheaper (perhaps regional) market and renting where you want to live. • Big sacrifices: Such as forgoing engagement rings and big weddings to boost savings. • Government assistance: State incentives, first home super saver scheme and/or the promised 5 per cent deposit initiative. • Help from the 'Bank of Mum and Dad': As a gift, loan, co-ownership arrangement or loan guarantee. Put everything in writing, especially when you are borrowing or buying with someone else – even family. 5. Seek (the right) advice TikToks and Insta reels are not a reliable source of information about money. Neither are your well-meaning but clueless friends and family. Don't get blinded by love either. Emotions can override logic, leading to STDs (sexually transmitted debts). A professional accountant and financial adviser use their understanding of relevant legal, tax, and investment frameworks to develop a plan specifically tailored to your unique values and circumstances. You don't know what you don't know in the complex world of finance. So don't gamble your hard-earned money on the advice of someone who isn't really knowledgeable enough to give it! Helen Baker is a licensed Australian financial adviser and author of the new book, Money For Life: How to build financial security from firm foundations (Major Street Publishing $32.99). Helen is among the 1 per cent of financial planners who hold a master's degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at
Yahoo
2 days ago
- Business
- Yahoo
Humphrey Yang Reveals The Three Things That You Must Never Do With Your Money: 'It Can Get Really Messy'
Doing the wrong things with your money can ruin relationships, hurt your investments, and move you further away from your long-term financial goals. That's why financial guru Humphrey Yang recently shared three things you shouldn't do with your money. Following his advice can help you avoid a lot of heartache. Getting rid of bad thoughts, habits, and actions will then free up more space to practice good money habits. "It can get really messy," Yang stated if you do the wrong things with your money. These are the three things Yang mentions in a recent TikTok. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to Yang was quick to mention that you should avoid lending money to your friends and family. He makes this point clear within the first five seconds of the video and explains that lending money to friends and family can create unnecessary awkwardness and drama. Imagine giving $10,000 to a family member who promises to pay it back but then they don't follow up on paying it back. It's going to make the relationship feel uncomfortable, especially if a friend or family member gives you a hard time when you ask for your money. You can set a hard line and not lend a dollar to anyone. However, if you still want to give some money, you can give a much smaller amount as a gift. For instance, if a friend or family member asks for $10,000, you can give them $100 on the condition that they never ask you for money again. It may be better to set a hard stance and not give anyone any money right from the start, but each person is different. Trending: Invest where it hurts — and help millions heal:. Having some money in the bank is good in case a random expense comes up. Then, you won't have to sell your stocks and other assets to cover an emergency. However, the bank account you use plays a big role in how much interest you earn. Many big banks rely on their branding and long history to attract customers. However, many of these same financial institutions have checking and savings accounts with low or no interest. If you explore your options and consider online banking, it's easier to find high-yield savings accounts that offer up to 4% APY. If you save $10,000 at 4% APY, you will earn $400 during that year. However, big banks usually have much lower rates, meaning you'll receive far less than $400 with the same $10,000 also threw cold water on buying rapidly depreciating assets. He put cars and designer items in the spotlight as assets that quickly lose value. Yang mentions that new cars lose 20% of their value the moment you drive them out of the dealership. Instead of getting a new car, you can save money with a used car that can still drive you from place to place. A car is one of the biggest expenses for most people, right behind housing. Looking in the used car market can save you well over $10,000 if you do your research. He wraps up by encouraging people to avoid making purchases just for the sake of showing off. Designer bags fit this category, and while the bag may look nice, you can get a similar bag for a much lower price. Then, you can put the money you saved into the stock market and embark on the path toward long-term wealth. Read Next: Here's what Americans think you need to be considered wealthy. Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Humphrey Yang Reveals The Three Things That You Must Never Do With Your Money: 'It Can Get Really Messy' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
08-06-2025
- Business
- The Independent
Finance experts suggest ways to teach children good money habits over the summer
The summer holidays can be a 'perfect time' for parents to teach children about budgeting and spending, finance experts have said. Introducing children and young people to good money habits from a young age can help to build financial confidence and set them up for life, they added. They made the suggestions ahead of My Money Week (June 9-13), a campaign and activity week which aims to encourage children and young people to learn about money matters. Chris Henderson, save and pay director at Tesco Bank, said: 'It's so important to teach children about money, and how to manage it, from a young age. 'The skills and knowledge that are gained, which we carry with us into adulthood, can really impact how we live our lives and our financial wellbeing.' He suggested making everyday spending a 'fun challenge,' adding that the summer holidays 'can be the perfect time to talk about budgeting and spending'. Mr Henderson added: 'It might be a quick trip to the shops to pick up dinner or something bigger, like a day out. Let your children take charge of the budget and see how they would spend the money – you could even set them a challenge, like planning a day out.' With many transactions taking place digitally rather than with physical cash, Mr Henderson also suggested showing young people 'what it looks like when you get paid, the money landing in your bank account, and then the things that you have to pay for – like water, electricity or housing costs. 'For older children, you can start introducing them to things like national insurance and your pension.' He also suggested introducing the idea of savings with a 'wishlist' of items children want, inviting them to consider how much money they would need to save and how they might reach their savings goals faster. Mr Henderson added: 'Not only will this help them save, they'll also value their purchases more and only spend on items they really need, rather than the first thing that catches their attention.' Brian Byrnes, head of personal finance at financial app Moneybox, suggested that some parents could consider opening a junior Isa. He said: 'By the time your child turns 18, a junior Isa is automatically transferred into an adult Isa, allowing them to decide on how they wish to spend, or invest their hard-earned savings.' Mr Byrnes added that if parents are concerned about how their children will spend the Isa money once they reach adulthood: 'You could put a small amount into a junior Isa and the rest of your savings into a different account earmarked for your children's future.' As with adult Isas, junior Isas have tax advantages and the money held in them is ringfenced from the taxman for as long as it remains in its Isa 'wrapper'. Mr Byrnes also suggested talking openly about money with children, adding: 'Talking about any money you have put aside for your children with them is a fantastic way to include them in your plans and educate them on savings and investing.' Susan Hope, a retirement expert at Scottish Widows, highlighted recent research it had commissioned which indicated that more than two-fifths (44%) of adults doubt they will ever achieve financial independence, 'with confidence in making everyday financial decisions a driver of this'. She suggested that going through payslips with young people could help them to understand concepts such as tax and national insurance (NI). Ms Hope added: 'Let your children see how you budget, compare prices, or plan for your weekly spending. Involving them in decisions, like choosing between two activities based on cost, teaches practical skills they'll use for life and should instil money confidence.' As children get older, she suggested talking to them about 'important topics like saving into a pension and what this means. A pension is something they will likely encounter for the first time when they start full-time work and we know that engaging early gives people the best opportunity to build a healthy pot for later on in life.'
