MasterMyMoney.com.au

Q
I am 45 year old woman. I have lost property and money through my divorce 7 years ago. I have been renting since then. I have about 20k savings. Am i better off purchasing a property or continuing to rent and putting my extra cash into superannuation for my future?

A
It is not a matter of either or but both. Rent now and when you have a larger deposit (ideally 20% plus expenses e.g. stamp duty) look to purchase a home to live in. At the same time maximise superannuation benefits like the government co-contribution and possibly salary sacrifice depending on your cash flow needs. I discuss your question further in this By making it OUR spending plan and not MY spending plan. Set aside some time to determine your financial goals as a couple/family. Agree on the goals. The nerd of the family (who prepares the budget) then needs to take the budget to the spontaneous creative spouse to give their input and then together agree on the budget.

Salary sacrificing to superannuation can be a great way to save for your retirement as it can reduce your taxable income and move your assets into the super, which is subject to low rates of tax.
Salary sacrific... (more)

User of the Week

Eugene has been reading the Barefoot Investor and has shared with us some of it's tips:

1. Ask yourselves what you really want.
2. Set some goals and work out how much you are spending on stuff you can do without.
3. Open a high interest on line account and have your pay put in t... (more)