Simple strategies to help all Australians make money in 2019

Despite fears of a global recession, Aussies can still make money this year. Experts explain how singles, DINKS, families and retirees can grow their cash and what they can do with a spare $5000.

Australians looking to make some quick cash in 2019 can do so if they adopt some simple financial strategies.

Despite many households being laden with debt and experiencing minimal or no growth, employment worries remain a concern for many and so too do subdued house prices.

Interest rates are sitting at record-low levels and the last week was filled with worldwide jitters around the sharemarket.

This has raised concerns of a global recession and the nation’s ASX 200, the benchmark share index, saw $56 billion wiped from its value on Thursday alone.

However, these are some techniques the experts say still allow you to make your money work in 2019.

SINGLES

Tribeca Financial’s chief executive officer Ryan Watson urged people to start a savings plan immediately.

“Open an online savings account and set an automatic fortnightly savings deposit,” he said.

“Create a savings habit, for example save at least 20 per cent of your savings from your weekly, fortnightly or monthly salary.”

He also said understanding the basic mechanics of money was a massive advantage to have.

“Educate yourself about money and commit to learn more about money and how to be in charge of it, instead of being a slave to it,” Mr Watson said.

What to do with a spare $5000? Pay off any credit card or personal loan accounts and then close the relevant account to avoid any temptation to use it again.

‘I PUT MONEY INTO PROPERTY, NOT RENT’

Project manager Yanni Mastro said living at home with his parents has helped him get closer to buy his first property.

The 25-year-old said he would rather allocate money towards buying an investment property than paying rent.

“My current financial goal is to buy an investment property within the next year or so,” he said.

“With the housing prices going down I feel like now is my opportunity.”

Yanni Mastro has already started saving while still living at home. Picture: Mark Stewart

He said purchasing an investment property meant he could make money because expenses on the property are tax deductible.

“It’s just too expensive for young people like me to live out of home,” Mr Mastro said.

“At this point in my life I don’t have a family or anyone I need to look after, so I’m focusing on getting myself set up.”

With no debts other than his student Higher Education Loan Program (HELP) debt he said it was a good chance to save and splurge at the same time, admitting he spends a lot on eating out.

DOUBLE INCOME NO KIDS

For those who have the luxury of having two incomes and no costs of raising children it is the perfect time to get ahead.

“You should be saving at least 40 per cent of your salary — now is the time to create wealth, before kids come along,” Mr Watson said.

But he also said people should be reassessing their expenses because money could easily be made by reducing wastage on higher everyday expenses.

“Continue to review your outgoings, for example gas, electricity and memberships,” Mr Watson said.

“Always be striving for a better deal, 20 to 30 per cent of savings could regularly be made by using this simple tip.”

He also suggested talking about money as a couple and setting up a financial plan of attack.

This would put couples “on the same financial page and it would pay off in the long run,” Mr Watson said.

What to do with a spare $5000? Invest the money in an index style share investment and then set and forget. Watch it grow over the next 10, 20 and 30 years and it will become your ‘rainy day’ fund.

If you don’t have kids, there are other ways to make money by investing it. Picture: istock.

‘WE PAY BILLS EARLY, SHOP AROUND’

Mother-of-two Rachel Leonard, 36, said her family is often thinking about easy ways to make a little extra cash.

“We find it’s so worthwhile shopping around for the best price on electricity, ringing providers to try and get the best deal,” she said.

“I also make sure we pay the bills early if it means that we get a nice discount for the following month.”

Mrs Leonard who works part-time as a studio assistant and her husband, Kieran, 41, who works full-time as a plumber are also focused on paying off their mortgage.

Rachel Leonard,36, and husband Kieran, 41 and children, Isabella, 7 and Indy, 5. Picture: Jake Nowakowski

She said they try to also cut their daily costs wherever possible.

“Doing things like shopping at Aldi rather than Coles do make all the difference,” Mrs Leonard said.

“The retailers will hate me for saying this but I always wait for clothes to go on sale.

“I find it happens pretty often so I never pay full price if I can help it.”

The pair are also saving up for a coastal getaway over the summer holidays.

PARENTS IN 40s/50s WITH KIDS

For these families the priority was often to save money or make money, Crown Money Management chief executive officer Scott Parry said.

“Their first priority should be depositing your salary directly into your home loan so you can pay it off a lot faster,” he said.

“This will help you save a lot in interest charges.”

Mr Parry also urged families to wipe any high interest debts, particularly credit cards which attract interest rates around 20 per cent and personal loans that were often above 10 per cent.

“Pay off consumer debts, personal loans, credit cards, that’s for example a 20 per cent return on your money by paying off your credit card,” he said.

He said setting up an ongoing recurring investment for expenses such as school fees, for instance throwing in lose change into accounts such as Raiz or an ING account which have roundup tools was a simple way to make cash.

These tools round up each time you spend using your card to the nearest $1 or $5 amount and invest the money or use it to pay off your home loan.

Mr Parry also urged people to “increase your super contributions by an extra five per cent on what your employer is doing and that will allow compound interest to take hold.”

What to do with a spare $5000? Pay off high interest debt or your home loan, or invest the money into your super fund.

Retirees can alsi continue to make money while not working.

RETIREES

Mr Parry said often retirees shift their mindset into “scarcity” with money once they have stopped work.

“They often don’t want to touch it because they don’t want to nibble into it,” he said.

“You need to know how much you have got in super and how long that is going to last.

“A lot of people don’t anticipate that the funds invested are still growing.”

He also suggested looking at getting other incomes streams, including peer-to-peer lenders including SocietyOne where you could invest your money, it’s loaned to someone else and you get a return on it.

“Become the bank, you can get rates around 8 per cent on this money,” Mr Parry said.

“Have a conservative fund where you could put money say in a mortgage fund and have 12 per cent return.”

What to do with a spare $5000? Enjoy it on an experience such as a holiday.

@sophieelsworth