Optimise extra funds
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Leverage July's pay and super changes
Following some notable changes in tax cuts and superannuation that occurred this July, one of our trusted financial advisors Andrew White has written an insightful article. Whether you’ve received a pay rise or not, there are still opportunities to make the most of these changes and strengthen your financial future.
Keep reading to hear Andrew’s thoughts.
Did you notice a change in your July pay?
July tends to be the month when any pay rises are processed. However this year, even if you didn’t get a pay rise, you’re still likely to see an increase in the money coming into your bank account and your superannuation account.
This is due to two things:
- Tax cuts commencing 1st July
- Superannuation guarantee increasing to 11.5%
Whilst the cost of living has been rising through interest rates and inflation, it’s likely that your expenses in July are materially the same as in April, May and June, meaning that you may be seeing a surplus that wasn’t there before.
This is a great time to start an investment strategy before that surplus gets absorbed into your normal spending and fades away (which easily happens to all of us!).
For many clients I’m talking with, the action plan is as follows
- Work out the difference in July’s pay and June’s pay.
2. Take that amount and consider the best investment for you – superannuation or an investment outside superannuation.
3. Set up a direct debit equal to the surplus pay and channel it into your chosen investment.
Taking these simple actions will start building your wealth in 2024 with no real change in your expenses or way of life.
With the benefits of compounding interest, this simple action could build a substantial amount of money over time. As an example, putting $100 a month into a growth investment for 10 years would have an ending value of $17,793.
If you want to have chat about any aspect of your financial situation, please don’t hesitate to reach out. The first step is to tell us a bit about yourself by filling in our contact form.
Andrew White
Having played key roles with the likes of PwC, Urbis and the AFL in accounting and financial control, Andrew knows a thing or two about managing money and making strong connections with people. He also knows the challenges and opportunities that come with transitioning from one career path to another. He brings all this in-depth knowledge and understanding to Tribeca, equipping clients with the confidence and financial strategies to achieve their professional and personal dreams.