Whether it was the heartache of homeschooling,closed pubs and gyms or the inability to see friends and families,you made it through. Well done you.
The pandemic was also a catalyst for many people to pay closer attention to their money,either to deal with disrupted incomes or just to observe how shutdowns radically reshaped our spending on things such as transport,eating out and pyjama-wear.
I certainly had a big year money-wise,from to at what is beginning to look like a pretty low 1.84 per cent.
Here is a wrap-up of some of the main things I learnt about money in 2021.
Index funds are a great way to begin your share-investing journey
In April, in the sharemarket.
I’ve always owned shares through my superannuation fund. But this year,along with a million or so other Aussies,I decided to directly dip my toe into the equity market for the first time.
Initially,I had planned to split my investment portfolio into single-stock ownership across the 10 categories I use to track my household spending. But my economist friends pretty quickly assured me that.
When,it was in an exchange-traded fund (ETF) which tracks the returns of the top 200 companies listed on the Australian Securities Exchange.
I fell in love with the passive nature of index fund investing,also picking up units in an international shares index ETF.
I now invest regularly each month,and I am learning to sit back and relax as the index grows over time (albeit it’s a bumpy ride sometimes).
Investing in your super is a great way to save on tax
In May,I finally started taking advantage of the generous tax concessions available on extra contributions to super.
I made a before the end of the financial year,scoring me.
I did this after becoming aware that it is possible to tip up to $27,500 a year into super (including your employer’s contributions) and only pay the ultra-low tax rate of just 15 per cent on your money,rather than your marginal tax rate.
Due to recent changes,it is also possible to roll forward unused contribution cap amounts from previous years,provided your total super balance is less than $500,000.
Going forward,I’ve instructed my employer to start taking out extra amounts of my regular pay to ensure I am using up this year’s contribution cap (but crucially not over it).
It pays to shop around on your mortgage
In June,after an exhaustive search,I switched banks to score a new lower interest rate on my mortgage. Not only did I lock in for two years at 1.84 per cent,I also scored a $4000 non-taxable cash back for my efforts. Always worth asking for a cash-back offer! I shared my.
You will never regret tracking your spending
In July,I published the details of,after diligently tracking every dollar I spent.
It was a real eye-opener. Not only has it helped me to hone my future borrowing capacity,I also have a much better idea of the income I will need for a comfortable retirement. I thoroughly recommend giving it a try. You can download and use the PDF Spending Tracker I made and still use.
It pays to investigate ways to “leverage” your investments
In July,I looked at whether I could. I could,but soon found banks are,prompting perhaps my most talked-about column of the year titled “‘”.
Amid spiralling property prices,however,,intervening to decrease the amount borrowers like me can borrow to fund another property purchase. My plans are on ice and I intend to revisit the idea in the new year.
It’s important to know what’s in your super and how it is performing
In July,the government released its new,which. It sparked a mission for me to try to figure out how exactly where my super fund money is invested. I.
Next year,I intend to run the numbers on whether I’d be better off trying to self-manage my super or use a fund’s direct investment option. Stay tuned. Until then,I wish you all a very happy Christmas and new year. Don’t go too crazy with the spending,okay? Either way,I’ll be back in the new year to help you keep whipping those finances into shape.
Take care,Jess xx
You can follow more of Jess’ money adventures on Instagram and.
*A previous version of this article stated the annual superannuation concessional contributions cap is $28,500. This was an error and the article has been updated to show the correct figure of $27,500.