Don't be fooled by those who splash their cash
March 28, 2022
Do you ever look at your social circle and wonder where all the money comes from? These people seem to have jobs that pay about the same as you, but their lifestyles are seemingly full of holidays, gourmet dinners and new cars. However, if you delve deeper things aren’t always what they seem.
1. The debt vs sanity scale
How much debt are you willing to take on before you start to lose sleep at night? This figure is different for everyone, and your friends Nick, Niya and Nino all have their own unique risk profile.
A $50,000 car loan and $20,000 owing on the credit card is just everyday life for some people, while others break out in a cold sweat if their bills aren’t paid as soon as they arrive. So perhaps what you are witnessing in your social circle is varying degrees of budgetary risk.
2. The controlled cash splash
Your friend Skye might have just driven to a spa weekend in her brand-new car, but have you noticed she rarely buys new clothes, or she meets you for a walk rather than for lunch?
These types of people control their spending and only splash their cash on things that are important to them. They might seem like they’re drowning in money because of their prestigious purchases, but really, they’re quite economical with their finances.
3. The wise investor
The thing about money is not many of us talk openly about it.
Minh might be a person who has the same job as you, they may go to just as many events as you do, but they save 15% of their salary and have been doing so since their first job at McDonalds. They’ve invested in the stock market and have accrued a nice little nest egg over the years. So, what might be perceived as extravagance, is actually them reaping the benefits of a good savings ethic.
4. The bank of Mum and Dad
It’s just a fact of life that some people have parents or grandparents that give them financial support. This may mean help with a home deposit, regular payment of bills, expensive gifts or a trust that provides them with steady cash handouts.
Not everyone is upfront about this type of help so it’s probably best to just accept you didn’t win this particular lottery. Instead, start focusing on all the smart financial decisions you can make yourself.
5. Is your money problem closer to home?
If everyone seems to have more money than you, then perhaps the problem is you.
Do you know where your money goes? Are you putting some away for your future? If you answered no to these questions, then it might be time get your finances in order.
You can start controlling your finances by preparing a budget , and you can get prepared 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. Find out all the ways you can contribute to your super.
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You can get simple advice about your TelstraSuper account for no additional cost – it’s part of your membership. We can talk to you about your risk profile, the ways to boost your super, and your investment options.