What do you call for the process of managing your money to achieve personal economic satisfaction?

Some days you might feel confident you can meet your needs within the boundaries of your current income, whereas other days you may feel like you don’t have nearly enough funds in order to do so.

The truth is, you’re not alone. Nearly 2.5 million Aussies say they feel moderately to severely financially stressed, even though financial stress has been decreasing year-on-year in Australia1.

If you’re interested to know more, we take a look at some of the findings that came out of AMP’s 2018 Financial Wellness in the Australian Workplace Report, in addition to what steps you could put in place to potentially improve your financial position and wellbeing.

Some of the figures that came out of the report revealed the following2:

• The number of Aussie employees feeling financially stressed across the board in 2018 was 19%, down from 22% in 2016.
• In comparison to 2014 research, Aussies also indicated they had greater disposable income than in years gone by and were spending more money.
• Research participants in 2018 also said they felt more confident in dealing with financial matters and with their own levels of financial understanding.
• Compared to two years ago, fewer people said they were engaging in negative financial behaviours, such as making late repayments on bills and credit cards. At the same time however, there was a decline in positive financial behaviours, such as people making additional repayments on mortgages and putting aside savings for a rainy day.
• Of those working Aussies that did indicate that they were financially stressed, this was being felt across all industries, income levels and roles.

On a positive note, research identified that those who have been financially stressed in the past were often able to recover through changes to their behaviour and mindset3.

Here are some suggestions of things you could do (if you aren’t already) which may help you to improve how you feel financially.

Create a budget that works for you

When it comes to creating a budget, try jotting down into three categories - what money is coming in, what cash is required for the mandatory stuff (such as bills), and what dough might be left over (which you may want to put toward existing debts, savings or your social life). Writing up a budget may take an afternoon out of your diary, but it will help you to more easily identify where there’s room for movement. For instance, could you reduce what you’re spending on luxury items, subscription or streaming services, eating out or clothing?

Consider rolling your debts into one

If all the small debts you once had, have multiplied and grown into bigger debts – you could look to roll them into a single loan, and reduce what you pay in fees and interest. This could help you to save a significant amount of money (depending on what you owe) and make it easier to manage your repayments, as you’ll potentially only need to make one monthly repayment rather than having to juggle several. The main thing to ensure is you are paying less than what you are currently when it comes to interest rates, fees and charges, and that you’re disciplined about making your repayments.

Try to save a bit of money regularly

Even a small amount of cash deposited on a frequent basis could go a long way toward your savings goals, with a separate research report indicating the average savings target for Aussies is a bit over $11,0004. Some tips people said helped them along the way was transferring spare funds into an actual savings account, setting up automatic transfers to their savings account (so they didn’t have to move money manually) and putting funds into an account which they couldn’t touch5.

Set aside some emergency cash

With research showing that an emergency fund of between $4,000 and $5,000 is generally enough to cushion most working Aussies when it comes to unexpected expenses, it's probably worth some thought6. An emergency stash of cash could give you peace of mind and reduce the need to apply for high-interest borrowing options should you be faced with a busted phone, car tyre, or bad landlord or lover leaving you financially stranded.

Be open to talking money with your partner

One in two Aussie couples admit to arguing about money7, so if you haven’t already, it might be worth sitting down to ensure you’re on the same page and that both parties’ goals are being considered. Understandably, it may not be the easiest topic to broach, so if you’re looking for some tips, check out our article – 10 money conversations to have with your other half.

See if you can get a better deal with your providers

You more than likely have several product and service providers, and figures show you could save more than a grand annually on energy alone just by switching from the highest priced plan to the most competitive on the market8. Again, this may take a couple of hours out of your day, but the savings you could potentially make may make a real difference to what you cough up throughout the year.

Don’t be afraid to seek financial assistance

If you are struggling to make repayments, you may be able to seek assistance from your providers by claiming financial hardship. All providers must consider reasonable requests to change their terms in instances where you may be suffering genuine financial difficulties and feel help would enable you to meet your repayments, possibly over a longer period. In addition, you can talk to a financial counsellor (free of charge) at the National Debt Helpline by calling 1800 007 007.

Looking for other tools and tips? If you want help creating a workable budget, try our online budget planner calculator. 

1, 2, 3, 6 AMP’s 2018 Financial Wellness in the Australian Workplace Report, pages 7, 8, 14
4, 5 MoneySmart – How Australians save money infographic
7 Finder - Heated conversations: 1 in 2 Aussie couples argue about finances paragraph 1
8 Mozo - Sick of high energy bills? Aussies willing to change providers could be saving over $1,000 a year paragraph 2

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Whether you have a job, run your own business, or receive an allowance, understanding how to manage your money can help you survive and thrive.

This page aims to provide you with some useful advice to help you to get in control of your money to help you achieve your goals.

On this page: Banking, Budgeting, Credit and debt, Financial counselling, First job, Getting a car, Getting a pet, Insurance, Investing, Mobile phone deals and plans, Moving out of home, Online transactions, Saving, Scams, Study costs, Superannuation, Tax, and more information.

Banking

Putting your money into a bank account doesn’t mean you can forget about it. It’s your money, so you should make sure it’s being looked after in the way you want.

There are lots of different bank accounts, so make sure the one you have is right for you. If it’s not, think about switching. You could save money in fees and charges.

Visit the Australian Securities and Investment Commission (ASIC) MoneySmart website to find information about banking, including types of accounts, using your account, online and mobile phone banking, government guarantee on deposits, what you can expect from banks and how to make a complaint about your bank.

Budgeting

By taking charge of your money you will ease money stress and feel more secure and in control.

Visit the MoneySmart website to find information about budgeting, such as tracking your spending and creating a budget.

Credit is money you borrow from a financial institution like a bank or credit union, to spend the way you want. Credit can come in different forms, such as ‘buy now, pay later’ services like Afterpay and Zip Pay, interest free loans and personal loans. You will need to repay this debt to the credit provider, usually with interest and sometimes other extra costs like yearly annual fees on top of the amount you borrowed.

Visit the MoneySmart website to find information about credit and debt, including types of credit, what to do before you borrow money, credit reports and getting help with debt.

Credit debt can easily spiral out of control if you aren’t careful with how you spend. If you find yourself in trouble managing your credit debt, don’t give up–you can get help to get on top of your finances. Check out MoneySmart’s 5 golden rules for managing debt.

Financial counselling

Financial counselling is a free service offered by community organisations, community legal centres and some government agencies. Financial counsellors can help you solve your money problems.

Visit the MoneySmart website to find information on financial counselling, including how to find a financial counsellor, what they do, and debt consolidation vs financial counselling.

First job

When you start a new job, it’s important to find out if you’re getting the right pay and what to do if you have problems at work.

Visit the MoneySmart website to find information about money issues related to your first job, such as getting paid and solving pay issues.

Getting a car

When buying a car you need to consider how you will buy it, how much it will cost to run and what type of insurance to get.

Visit the MoneySmart website to find information on getting a car, including finding the right car and ongoing car costs.

You can also visit the StreetSmarts website to search for the safest cars within your budget by make, model or price. It can even filter for cars with engines that are Queensland P-plater approved.

Getting a pet

Adding a furry friend to your life can give you companionship, love and exercise, but animals can be costly to care for properly.

Read about some of the common costs of pet ownership and find suggestions on how to keep these to a minimum.

Insurance

Insurance provides the money you need when things go wrong. If you have insurance, the cost of repairs, medical treatments, travel changes or theft can be softened.

Visit the MoneySmart website to find information about insurance, including what to look for in insurance products so you can find the right policy for your needs.

Investing

Whether you’re an experienced investor or a beginner, there are plenty of steps you can take to grow your money and keep it safe.

Visit the MoneySmart website to find information on investing, including the basic principles of investing and how to find a good financial advisor.

Mobile phone deals and plans

There are many mobile phone plans and each one offers something different.

Visit the MoneySmart website to find information on mobile phone deals and plans, such as considering your options, questions to ask before buying, tricky phone terminology and signing a phone contract.

Moving out of home

The right time to move out of home is different for everyone. Some people leave as soon as they’re able, others might wait until they’ve saved enough money to buy their own place.

Visit the MoneySmart website to find information on moving out of home, including the costs involved, sharing with flatmates and a moving out checklist.

Find more general information about moving out of home, such as choosing a place to live and where to get help with housing if you need it.

Online transactions

Shopping and banking online can make life easier, but only if you know how to protect your money and your privacy.

Visit the MoneySmart website to find information about online transactions, such as internet banking, online shopping and solving problems with online transactions.

Saving

Setting a savings goal for yourself is exciting. Your goal could be to put some money aside for emergencies, or you may want to save for a car, holiday or home deposit.

Whatever your goal, once you start a regular savings plan you may be surprised with how much you can achieve, once you put your mind to it.

Visit the MoneySmart website to find information about saving.

Scams

Visit the MoneySmart website to find information on scams involving investments, superannuation, managed funds, financial advice or insurance.

For other scams, visit the Scam Watch website to find out about types of scams, how to report a scam and where to get help. You can also subscribe to Scam Watch Radar to receive email alerts on the latest scams direct to your in-box.

Study costs

Whether you’re a student at high school, TAFE, university or a private college, it helps to plan for the costs of travel, study and resources.

Visit the MoneySmart website to find information on studying costs, such as living on a student budget, student loans and work-related study.

On this website you can also find information about education costs and financial help or visit the TransLink website to find if you are eligible for a public transport concession in Queensland.

Superannuation

Superannuation (or ‘super’) is money set aside during your working life for when you retire. For most people, super begins when you start work and your employer starts paying a portion of your salary or wages into a super fund for you. These payments are known as ‘super guarantee contributions’ or ‘concessional (pre-tax) contributions’. Super is your money.

Visit the Australian Taxation Office (ATO) website to find information to help you understand super and work out what you’re entitled to.

Tax

Getting a tax file number

When you start paid work–whether it’s casual, part-time or full-time–you will need to provide your employer with a tax file number (TFN). Your TFN is:

• your personal reference number in the tax and superannuation systems
• an important part of your tax and superannuation records, as well as your identity, so keep it secure
• yours for life; you keep the same TFN even if you change your name, change jobs, move interstate or go overseas.

How you apply for a TFN will depend on your circumstances. Find out more about how to apply if you are:

Visit the ATO website to find out more information.

Centrelink also requires you to have a TFN number when you are receiving payments from them. If you receive support from Centrelink and require assistance with your TFN application, contact your local Centrelink Customer Service Centre.

Lodging your tax return

A tax return is a form you complete online, on paper or get a tax agent to help you with, helps the Australian Tax Office (ATO) check if you have paid enough tax or too much. The form tells the ATO how much money you earn and if you are claiming deductions.

Tax returns cover the financial year from 1 July to 30 June. If you’re lodging your own tax return, it’s due by 31 October.

Visit the ATO website to find information on lodging your tax return.

Income and deductions

Income tax is paid on money you receive, such as salary and wages. You can reduce the amount of tax you pay by claiming certain deductions that are directly related to earning your income. Your tax may be further reduced if you are eligible for certain tax offsets or government rebates.

Visit the ATO website to find information on income and deductions.

Getting a tax refund

If you get a tax refund, find information on smart ways to use it that will give you long-term benefits.

More information

Last updated: 22 April 2022