Starting working life
When you start work, you need to start managing your money. Five things you should look at straight away are your bank account, tax file number, super, savings and insurance.
Your bank account
Your employer will need the details of your bank account so they can pay you. If you don’t already have a bank account it’s worth comparing fees and charges before you decide which account to open.
Your tax file number
If you don’t provide your employer with a Tax File Number (TFN), you will be taxed at the highest personal rate. If you don’t have a TFN you need to get in touch with the Australian Tax Office (ATO).
Your super
Generally, your employer must pay 9% of your salary or your wages into a super fund. This is call the Super Guarantee (or SG) and its designed to help you save for your retirement - that means you generally can't access you money unitl you retire.
Your super fund invests your money on your behalf - it may offer you some choice as to how your money is invested. If you learn about your super when you start work it can be of real benefit later.
Your savings
When you start work have a look at your budget to see if you can start to put some money aside you may want to save for a holiday or a new car. Your employer may be able to split your pay into two accounts, one for saving and the other for day to day living. Even saving a small amount each week can help you grow your savings into something much bigger over a year or two.
Insurance
Insurance is an important part of any good financial plan. It can provide protection for your family, assets and lifestyle. When you start work, think about the things you value most and how you would replace them if they were lost or damaged. You may not be able to cover the costs if this happens and insurance can help.
If you have people who depend on you, think about how you would be able to provide for them if for some reason you couldn’t work.
Did you know?
Being self-employed can afford you flexibility and freedom, but it’s important to ensure that your financial interests and those of your business are being properly managed.
Your income and financial needs are likely to change through your working life. There are however some sound financial habits which once learned will always be beneficial.
