Home and Personal Loan Redraw
If you're gearing up to start a new job there's a number of things you'll need to do to prepare. Here's 3 things to look at from a financial perspective.
A new job might mean a change in the amount of money you make and the type of expenses you have. This will have an impact on your budget.
Remember, if you are lucky enough to be earning more, this doesn’t mean you need to spend it! What a great time to put that extra money towards savings.
Your budget should also take into account changes to any expenses, such as:
Any changes to your income and expenses will need to be reflected in your budget. If you haven’t drawn up a budget before, now is a good time to start! Also consider what your short and long term financial goals are. For example, do you want to go on a holiday within the next year? Do you want to save enough for a deposit on a house? Are you looking to renovate an existing property?
Superannuation is a way to save for retirement. Generally, you will have the freedom to select your own super fund to have your superannuation paid into. However, most employers will have a preferred super fund. If you have had a number of jobs you may have more than one super account. If you do have more than one account it is a good idea to consider consolidating your accounts. This is because you will more than likely be paying administration charges, plus have to deal with paperwork for each fund. Different super funds provide different benefits so it’s important to look into what your super fund(s) offers when deciding which is right for you.
If you are confused, it might pay to talk to a financial planner who can look into your current financial situation, including your superannuation, and provide advice on the best way to manage it. A financial planner can also help you with other important considerations such as income protection and investment options.
Starting a new job is a good time to review your current savings habits. For example, is your wage being paid into the best account for your situation?
Check that your pay is going into an account with a high interest rate, so you can be rewarded for the money that you are saving. If you have a home loan, it might pay to look into having an offset account attached to your loan so you can make the most of your daily savings balance, which is offset against the interest of your loan. If you are unsure about any of the benefits associated with your financial products, now could be a good time to do a review.