Milestones and money

And how it’s possible to celebrate key moments while sticking to a budget

Life is full of great milestones… your first job, getting married, having kids, starting a business or being promoted at work, hitting a landmark age. They all deserve to be celebrated. But if you’re watching your money, it can be easy to feel restricted. And while some milestones can be planned for, others can be unexpected. But marking these occasions can still be enjoyable, with a little planning. They can also be useful times to check things like your super and all the things that go with that.

Expect the unexpected.

If you’re trying to live within a sustainable budget, then hopefully, in the planning stages, you set aside some money each week for unexpected expenses. Or maybe the reason you’re budgeting is to build up a reserve for such events. Either way, a well-planned budget should include some contingency for emergencies.

Plan for known events.

A big birthday, buying a house, and even most weddings don’t just happen out of the blue. Planning celebrations for such milestones can be great motivators for budgeting in the first place, and can show you just how possible it can be to tighten the belt and still enjoy life now.

Of course, celebrations such as birthdays and weddings are one-off expenses involving a set goal (and date). Other major milestones, such as starting a family or buying a home, will bring about ongoing expenses and require a longer-term plan because these can get pretty steep and be around for quite a while.

But either way, once you get into the swing of budgeting, it can quickly become second nature.

Not all milestones are to be celebrated.

Just as there are wonderful milestones in life, there are also the ones we’d rather not think about. Unfortunately, these can also bring unwanted expenses, making their impact on our lives even more unsettling. From disasters, accidents and illness to relationship breakdowns and unemployment, these events often cause emotional and financial distress. And while they’re not something we want to plan for, having savings or insurance in place can help to ease the burden when we’re feeling at our worst.

So again, planning for unexpected costs is important, and a key part of that planning is making sure any insurance you have is not only adequate but also delivers good value, and is checked regularly to ensure it reflects your current and expected needs. The insurance* through your super fund (such as Prime Super) can be a way to ensure you’re getting appropriate cover, and if it's paid from your super balance, it won't eat into your income or savings.

Use milestone moments to review the basics

Whether  milestones are good or not-so-good, they’re often an opportunity to review your financial basics, for example:

• First job: Think carefully about the fund you want to join. With the new ‘stapling’ laws, this will become the fund that follows you from job to job, until you choose a different fund.
• New job: Check for lost super and that you haven’t got multiple accounts which will each be charging fees. If you do find you have more than one super account, consider consolidating them into one, member-focused fund.
• Pay rise: If you’re already living comfortably, consider salary sacrificing the extra income into your superannuation, and enjoy potential tax benefits now, as well as more money for your retirement.
• Married (or divorced): Update your superannuation beneficiaries and your insurance cover.
• Kids on the way: If you or your spouse are going on leave to raise a family, chat with your super fund about spouse super contributions.
• Financial windfall: Invest some of it in your super by making a voluntary contribution (just stay below the annual contribution caps).
• Nearing retirement: Chat with the experts about transitioning to retirement or retiring completely to finally enjoy the life you’ve been investing for while you were working.

Need more info?

 If you have questions about anything in this article, book a chat online with our super specialists.