Financial Health Check

I’ve been listening to a bit too many podcasts about money lately…as you can probably tell. I was listening to one particular podcast where someone on the show was making a website based on getting you better deals by allowing you to compare side by side what the different banks were offering in terms of things like term deposits, loans, etc. I can’t believe how much time it saves! So today, post work I have set about moving some money I have been saving up for my future house deposit and put into a 3 month term deposit…I highly doubt I will be able to purchase a house within the next 3 months, so better to maximise the interest I can get while it is in the bank.

I have a second account in which I have some emergency funds that I can use for spending, because I don’t want to lock away all my money in a fixed term deposit. I will use this money for things like unexpected expenses I may incur or for expensive things like specialist appointments… *Sad face*.

I wish I had done this earlier! It takes a lot of time though, trying to sort out your finances. As I also have multiple bank accounts across three different banks and so manyy bank cards…it’s hard to keep track of how much money I actually do have…xD yet great in a way, because unseen and forgotten money means I spend less!! I also have to remember to keep checking up on my stocks and to keep an eye out for good prices..and to remember to keep growing my rather small portfolio.

I still have much to look in terms of the superannuation..I think I will look further into it after I finish up my current contract…as I will have to combine that super with my other super account…somehow…

So many things to think about as an adult…who knew looking at your financial health was so important and took so much time? *sad face* BUT in the end, if you look after your finances, it will look after you in the future. *happy face* (hopefully).

Financially Literate

Lately, I have been doing some adult learning (imo). I have been trying to learn more about money through various podcasts on money. AND BOY is there a lot of things I don’t know… As a young one, I have never been that interested in money and my parents did not teach me much about it, except that it was precious and we didn’t have much. *sad face*

What even is Super?? How does it even work??

Through the last year and a bit, I have encountered terms like Salary Sacrifice, Life Insurance, Bonds, ETFS, mortage brokers, credit scores, and Stocks. I think I’ve grown up a bit now that I have become interested in money, or should I say in the fancy adult word, finance.

Studying in the health sector for 5 years has allowed me to become health literate, maybe a bit too much (those wrong self-diagnoses LOL). I did not understand why some people had poor health literacy and make such bad health decisions (every 1st generation child of a migrant would understand). I have always thought that was sufficient enough to keep me healthy and sustain me through life. However, I have only just realised I am seriously financially illiterate (and many of my friends are too)! I have never really did any check up on my money and just thought putting in the bank and getting a little interest was enough to sustain me for life. LOL.

I have realised, that if you want to look after your finances well, you need to take some time and think about what your saving goals you are aiming for and to make a budget (of some sort). You need to think about where you want to invest your money, because leaving it in the bank, while it is safe, it typically has low interest rates, and hence low returns.

Your super fund is basically your retirement fund, as a young kid in my first job, I always scowled at how money from my pay went into this “SUPER” fund that I couldn’t access until I was like 67. BLEH. What if I didn’t even live to that ripe age? Gimme my money now! Is what I probably thought. But, when I am old and wrinkly, and when I get to receive that money in my fund, hopefully I will be able to thank my younger self for working so damn hard for all those years to build a better retirement future. I don’t really know how supers work, but in my limited understanding I think they use your money and a good company hopefully will use it to invest and grow the super. However, for those with multiple super accounts, they might be paying a whole bunch of fees that they are unaware of.

There is still much to learn about money and finance and surprisingly, it is becoming more interesting and appealing to learn about money. $$

I ask my self, Have I stepped another step towards this holy adulthood? As I sit on a chair wearing my snoopy PJs and thinking about how it would be great to not go to work tomorrow. *Sad face*

Passive Income

As a kid, I have always thought…the only way to make money was to work for it or win the lottery. I didn’t know or even think of all the other possibilities that are out there to make income and I have decided to make this post as a brain storm of the ways I think you could make money in addition to working your ass off for it. Wouldn’t it be nice if you didn’t have to depend on your ability to work for an income and basically I guess is when you can say you are comfortable.

I am going to set this in groups of High Risk- High Return, Low Risk- Low Return, and inbetweens.

High Risk and High Return:

-The stock market and buying volatile shares that can dip up and down, but potentially could make you a lot of money.

-Gambling large amounts of money at Casino.

-Hedge Funds/Start ups

-Signing up for a long and highly invasive Clinical Drug Trial

 

In between:

-Investment Property (depends on the house and location). Could also be doing things like homestay or Air B n B.

-Starting your own small business

-Becoming an social media influencers- Blogger, vlogger, instagrammer… and having a Patreon or Go Fund Me page

 

Low Risk and Low Return

-Investing in safe shares, such as the big banks or supermarket chains and receiving dividend payments periodically.

-Long term deposits in the bank.

-Pokies Machines

-Working a 9-5 day job 😦

-Selling your old shit – Marie Kondo your house!

-Government welfare payments 😦

 

This is all I can think of now…but I am sure I will find out some more and update this when I do!