Hmm, I knew the superannuation position was bad, but negative returns? I just logged into my super account and the Growth rate is around the “-2%”. Yes, negative two per cent! With my relatively low income tax rate, I wonder if I would’ve been better off if I had a self managed super where it had all just gone into the money market, where rates are currently around the +7.6% and 9% in the slightly longer term of two years. Last year, the Growth rate was so different, somewhere around the 15%, iirc. Thank you, US and your dodgy subprime loans…
You’re probably thinking: What’s a young one like you worrying about super for? I like to think I’m relatively on top of my money management, so I like to make sure I know where my money’s going. As super is almost a compulsory investment and through the beautiful benefits of compounding interest, it’s in my betterment to check my super every once in a while. I don’t make any personal contributions, except to take advantage of the Government Co-Contribution, although my contribution is going to decrease quite significantly next year. However, then again, I don’t recall anything about the Federal Budget announcing the continuation of the scheme. They put a whole lot of other interesting financial-related initiatives, but I won’t delve into those here.
Now in regards to money management. I currently have a tracking sheet where I list every item of spending and a very rough yearly budget. I am thinking of reworking this, especially as both my expenses and income have increased. Another consideration is to switch to recording by financial year, as opposed to calendar year. As a, um, budding accountant, you’d think I would actually be doing everything by the financial year, but my excel sheet and all my source document / paper files are actually sorted by calendar year. There are definitely a few administrative aspects of my life that need a makeover and rehaul.
Amerie – Money in the Bank