It pays to pay attention

Debt can weigh on your mind

If you’re established in your career and been working for a while now, you’ve probably accumulated a few debts along the way; a car, rent or mortgage, power bills, maybe kids, holidays – the list goes on and on. And all that debt can easily start to weigh on your mind. But there is an antidote to all that debt that can give you the invaluable feeling of financial peace of mind. And that’s to have a savings plan.

It all starts with good habits

No matter how much you’re paid, you’ll find it difficult to get ahead if you spend more than you earn. By making a simple savings plan now, you can develop some good saving habits will help balance out any financial anxiety you may be feeling.

For a start, create a budget that sets out all your expenses, from insurance and groceries to transport and entertainment. This can show you where your money is going. Check where you may be able to reduce your spending. Even if it’s just a little here and there, it can add up to big savings over time. You may decide on a weekly, fortnightly or monthly budget to help track your spending. You can find a useful budget planning tool on the MoneySmart website.

Plan to save and save to a plan

A good way to save is to put aside a set amount each time you’re paid. It could be the equivalent of a chocolate bar a day, or you could commit 10% of your salary. If you get a salary increase, commit a portion of it towards your savings. And while you may have a million things you’d like to spend those savings on, putting a little more into super, can be a smart thing to do.

Become a super smart saver

If you’re an ESSSuper Defined Benefit (ESSS DB) member, the first thing you can do is check what rate you’re contributing at. You can do this quickly by logging in to Members Online . Remember, your ESSS DB fund calculates your benefit according to the rate you contribute over time. So the more years you contribute at the maximum rate, the quicker you’ll reach your maximum benefit multiple.²

If you’re contributing at the maximum rate for your ESSS DB Fund, you could consider making extra super contributions to another account. ESSSuper members are able to open an Accumulation account if they want to make contributions in addition to their Defined benefit scheme contributions. When you contribute more when you’re younger, you have more years to allow the magic of compounding interest to grow your retirement funds.

If you’ve worked in any other jobs before joining ESSSuper, chances are you may have some super sitting idle in another account or fund. You can quickly find any lost super you have and consolidate it by using the super search tool available through Members Online. 

Remember, no amount is too small to save towards your super. To see how saving amounts as little as the equivalent of cup of coffee a day can make, take a look at our online savings calculator and see how much that little extra could add up to something much bigger.

Find out more about your super

To help you make informed decisions about your super, ESSSuper runs regular free information seminars and webinars. You can find a list of upcoming events here. Or visit our website for useful tips, tools, and information.