Four ways to save $100 this month!

AND: Do you salary sacrifice?

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Sascha Kelly & Equity Mates
November 06, 2023

$100 Challenge: The one thing Bryce won’t pay full price for…

Every month Bryce and Ren challenge themselves to earn or learn how to make an extra $100 each month. That’s because if you invest that extra $100, you could accumulate over $350,000 in 40 years. Thanks to the magical power of compound interest. Don’t believe us? Check the receipts with our compound interest calculator here.

Last week, we put a call out on Instagram to hear what you guys are doing lately and you had some amazing ideas. Here’s what you told us you’ve been doing:

  1. Avoiding Online Shopping and Takeaway Meals

    "I bought a coffee machine and make my coffee each day. Initially, you outlay money, but eventually, you save." That’s why we recommend tracking your saving for a month, so you understand how you spend your money - and can look for ways to cut back. Don’t say no to coffee, just find the most cost-effective path for you. Small changes can add up to significant savings.

  2. Sell Unwanted Items and Flip Purchases

    "I've gone the 'trash to treasure' route, streetside council pickups, making $80-$100 a week." Sometimes, treasure is where you least expect it. The community has successfully turned unwanted items into cash. Someone else wrote: "I just flipped a few portable air cons that I bought during winter, making a $170 profit!" She shares more details of how she came to reselling and flip items in the episode.

  3. Strategic Transportation and Shopping

    "Cut down on driving." It's a small change that can save you money and contribute to a greener planet. Making a shopping list is also a practical way to prevent impulsive purchases.

  4. Negotiate for Better Deals

    "Calling banks and insurance providers asking for a better deal." Don't be afraid to negotiate for better rates. This simple action can lead to substantial savings over time.

The "$100 Challenge" is all about finding those little wins, or the low hanging fruit, and paying attention to the tiny yet impactful changes you can make to your financial habits. Read more of our Equity Mates’ community thoughts here.

Then, make sure you listen to the episode and hear us go through our savings, including the one thing Bryce won’t pay full price for…

Ask An Adviser: Dividend investing, salary sacrifice and life insurance

Every month we welcome a brilliant financial advisor to come on Equity Mates Investing Podcast and answer your questions! (If you’ve forgotten, send them through to [email protected] btw.) This month, we were joined by the wonderful Ellie Fordham, who graciously answered all sorts of queries that covered the full scope - from investing, to super, to insurance!

Here’s some of our most frequently asked questions:

  1. How to I navigate the transition from a micro-investing platform across to a chess-sponsored broker instead?

    Ellie suggested when you’re considering moving from a micro-investing platform to a CHESS-sponsored one, think about and really assess the potential capital gains tax implications from selling and rebuying assets. The decision has to be right for you - so make sure you compare the ongoing costs of both platforms to decide which is more cost-effective.

  2. Should I be investing in individual companies alongside ETFs? Should I be worried I’m doubling up?

    In our discussion, we talked about the fact that holding individual stocks in addition to ETFs can be strategic if you're wanting greater exposure to a particular company or sector. But think about your diversification as well, if that’s the goal, relying on ETFs might be more appropriate.

  3. Is dividend investing something I should be prioritising?

    As with everything (sorry, but it’s true!) it really depends on your investment philosophy and goals. If you’re A younger investor, with decades before you retire, maybe focusing on capital growth might be more beneficial if you’re not in immediate need of income. Dividend stocks can provide steady income but may not appreciate as much in value. And of course, it's also important to consider after-tax returns, as dividends increase taxable income, whereas capital gains are only taxed upon sale.

    To check out all the episodes in our Ask An Adviser series, click here.

Do you salary sacrifice?

After chatting to Ellie on Thursday, we did a bit of a deep dive into all things about salary sacrifice. Firstly, what is it? Salary packaging allows for a portion of an employee's pre-tax income to be allocated towards various benefits, effectively reducing their taxable income. (If you’re really wanting a deep dive, dig into this article here).

The long and short of it? Ellie thinks it’s worth investigating, as it has the potential to provide meaningful tax savings. It can be particularly handy when companies offer exemption benefits, which can be directly applied to expenses such as home loans or childcare, aiding in budgeting and potentially delivering tax-free income.

She notes the usefulness of salary packaging for novated car leases, highlighting the convenience of having operational costs like fuel and insurance covered in the monthly deduction, thereby avoiding the financial shock of annual bills. Crucially Ellie also talked to us about how you need to be super careful with planning with such leases to prepare for the residual payments at the end of the term and advises comparing different lease quotes to find the best deal.

Do you salary sacrifice?

No wrong answers, we're just curious!

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