For most ordinary employees, it can be pretty tough getting your salary to cover all your expenses and leave enough for savings. These savings might be necessary for your retirement fund, to make an important purchase such as a gadget or a motor vehicle. When you get our hands on your cash each month, it can be a bit surprising to see the rate at which it melts away under the strain of everyday expenses.For instance, it may not seem like much, but if you have lunch at a fast food every day or buy a coffee from a popular franchise, you will be spending more than a hundred dollars a month that could easily have contributed to a more essential purchase that will give you long-term benefits.Obviously, if you were able to set aside the cash for your savings or your car beforehand, you would not be able to spend it on frivolous things. You would have less money in your pocket, but that would compel you to cut costs by buying lunch or making your own coffee instead.
If you are finding it hard to save up to make big purchases, it might be a good idea to let your employer do it for you. Simply enter into a salary sacrifice arrangement and your problem is solved. Making a salary sacrifice authorizes your employer to take a certain amount out of your pre-tax pay and put it into other things, such as a form of savings or to purchase a mobile phone or car. This would be ideal if you are having a hard time-saving for a spot cash purchase.When you elect to have deductions made in your pre-tax salary, you can use the money that you are essentially putting by for several things. One of the most common things that Australians sacrifice their salary for would be their superannuation fund. For instance, if you take that $100 a month mentioned earlier and decide to put it into your super fund for the next 25 years, you will find that it has accumulated more than $500,000 for you even if you make allowances for a conservative return rate. This means that you will get a rather tidy fund for your retirement.To make an important purchase, you can also look into salary packaging. Many salary packaging arrangements are made for the purpose of buying a costly yet necessary item, such as a car, a laptop, or a mobile phone. For instance, if you want to get your own car you can enter into a novated lease arrangement. A third-party company will lease a vehicle to you, and you can make payments on it through your employer who will subtract the amount of your payment from your pre-tax salary each month.
If you have decided to take a lease to get the car that you have ever wanted, make sure that you get the right company that will be able to provide you with the best interest rate as well as service. In addition, ask as many questions as you can so that you know what you are getting into.
