Let’s face it: we all wish we had a little extra money in our back pockets at the end of the month, but that simply isn’t always possible. What is possible, however, is making the most of your salary and getting more bang for your buck, and so below, we’ve rounded up some of the ways you can do that and ensure you’re not hemorrhaging cash in the wrong places.
Manage your money online
One of the best things that you can do to make the most out of your salary is to manage your money online. Make sure you have online banking and any additional smartphone apps, so that you can see when you’re money is coming in, and what’s going out. Often, bills and fees are taken mid-month, so if you know your salary arrives on the first of every month, you’ll be able to manage your salary better and understand what’s due to be taken when. On top of that, you should consider automating your payments, so that you don’t have to log into your banking to pay a loved one your half of the rent, and so on. The more automation that takes place, the less pressure will be put on you to manage your money and salary.
Understand your pay
If you’re starting a new job or you’ve been given a pay rise, it’s important you understand your new salary and get the very best out of your money. Use an Australian pay calculator to see how much you’re going to receive every month, and how much will be taken as tax, and remember to consider the new Low and Middle Income Tax Offset (LAMITO) rules, which were designed to help lower and middle-income workers receive more of their salaries. If you are still confused, then reach out to your human resources department or a financial advisor.
Set money aside
With so many bills and expenses to worry about, it can often feel like you’re poor again just a day or two after being paid. That’s why it’s important to set money aside for a rainy day, if possible. One of the simplest and most effective ways that you can do this is to round up your purchases. Say you spend A$143.42 in the supermarket, for example; round up your bill to A$150, and you’ll be able to save A$6.58. Open a savings account and round-ups will quickly add up, and help you to save hundreds of dollars over the year without much stress.
Ask for a pay rise
The final point we’d like to mention on this list is a pay-rise. If you’re not making enough so that you can save and treat yourself to expensive items and holidays, then you should speak with your boss and ask them about the possibility of raising your salary. They might not be able to offer this immediately, but over time you can work towards a larger pay packet.
Managing your money can be hard work, but it’s possible with the right strategy. Just keep a tight grip on your bills and expenses, try to save where possible, and you’ll be on to a winner.