Do your friends have more money than you?
August 21, 2023
Here are 5 reasons your friends might be splashing their cash when lots of us are feeling the financial pinch.
1. They’re older than you
The older they are, chances are the more time your friends have had to save and invest. Along with their bank balance, their super balance has also likely increased the longer they’ve been employed. Even just a couple of years can make a big difference! Check where your super balance should be at your age with ASFA’s comfortable standard.
2. They’re in debt
Your friends may have a beautiful home and the latest model car, but how much debt are they holding? If you’re more comfortable paying down your mortgage and building your savings, you probably have a different risk appetite than your friends.3. They received an inheritance
Your friends might be using money gifted to them from their family. If they’re lucky enough to have this financial cushion—good for them. Just don’t try too hard to keep up with the Jones’ and ruin your own savings plan.4. They’re good at saving
Does your friend take public transport rather than drive? Do they have a really old mobile phone? But they are also going on amazing overseas holidays? Whilst they might seem like they’ve got lots of money, they could actually be quite economical with their finances.5.They’re not investing in their future
If your friends are spending everything they earn today, then their tomorrow could be quite uncertain. Investing extra money in assets like your super means your savings are likely to benefit from compound interest over the years, which could build a bigger nest egg for your future.Is it time to get your financial future in order?
A good way to start is by paying more attention to your super. Extra contributions could provide tax benefits today, while investment experts can help grow your nest egg for the future.
5 popular contribution strategies
Any general advice has been prepared without taking into account your objectives, financial situation or needs. Before you act on any general advice, you should consider whether it is appropriate to your individual circumstances. Before making any decision, you should obtain and read the relevant Product Disclosure Statement and Target Market Determination or call us on 1300 033 166 for copies of these documents. You may wish to consult an adviser before you make any decisions relating to your financial affairs. To speak with an Adviser from TelstraSuper Financial Planning call 1300 033 166.