In today’s economy, it’s more important than ever to be savvy with your finances. But even the most financially responsible people can make mistakes that cost them money.
Here are the top four ways you might be missing out on money:
Not calling your bank to ensure you're getting the best savings account interest rate
Savings accounts are a great way to save money for short-term goals, such as a down payment on a house or a new car. But if you're not getting the best interest rate on your savings, you're missing out on money.
The average savings account interest rate in Australia is currently around 0.25%. But some banks offer much higher rates, especially on high-yield savings accounts. For example, some high-yield savings accounts offer interest rates of up to 2.5%.
If you're not sure what interest rate you're earning on your savings account, call your bank and ask. And if you're not getting the best possible rate, consider switching to a high-yield savings account.
Not shopping around for insurance
Insurance is an important part of financial planning, but it can also be expensive. That's why it's important to shop around for insurance to make sure you're getting the best possible rate.
When shopping for insurance, be sure to compare quotes from multiple insurers. You can also ask your employer if they offer any group discounts on insurance.
Not negotiating your bills
Many people don't realize that they can negotiate their bills. But many companies are willing to negotiate with customers, especially if they've been a customer for a long time or are willing to switch to a different provider.
If you're not sure if you can negotiate your bills, start by calling your service providers and asking. You can also check online to see if there are any resources available to help you negotiate your bills.
Not maximising your tax return
There are a number of tax deductions available to Australians, but many people don't plan ahead for the upcoming financial year.
You can consult with a tax professional to plan your deductions for the upcoming financial year. This degree of forethought will ensure you don’t miss out on anything, while also collecting the necessary documentation along the way.
Here are some additional tips for saving money and improving your financial situation:
- Create a budget and track your spending. This will help you see where your money is going and identify areas where you can cut back.
- Pay off your debt as quickly as possible. Debt can be a major financial burden, so it's important to get out of debt as soon as possible.
- Invest for the future. Even if you can only save a small amount each month, investing can help you reach your financial goals faster.
- Get financial advice from a qualified professional. A financial advisor can help you develop a financial plan that meets your individual needs and goals.
By following these tips, you can improve your financial situation and save money.