Financial tips and advice
Money management advice
- prepare a comprehensive budget taking into account all living costs and repayment amounts you have to make. This is the most important thing to do before you spend any money
- 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 satisfy requirements such as a history of saving with a particular institution
- be aware of interest-free periods on items. Check the type of borrowing – is it only interest free if you pay it off in time? If you do not pay in time the interest may go back to the start and you will be paying at line of credit charges – it is like a credit card and interest will compound
- 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 you must know by your budget that you can afford to pay it back and not incur interest or too much interest
- 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
- you may be able to pay insurance premiums monthly instead of annually, without incurring a penalty for doing so. It should be easier to pay a small amount each month rather than a large amount once a year
- organisations such as credit unions sometimes have special group arrangements with insurance companies so members can 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: The information provided in this fact sheet is of a general nature only, and is not intended to be legal advice. There may be errors or 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.
