13 Things Financially Savvy People Do To Help Level Up Your Money Game

Quit sleeping on these money-smart tips.

We may not all be great financial planners (it's not like we can be good at everything, hey?), but listening to and learning from our financially savvy people is a great starting point for learning about good money habits.

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We all have that friend who reads finance blogs in bed and talks animatedly about investment options, don't we? And they tend to be the ones doing, er...rather well in life.

The good news is this: The rest of us can watch and learn from pals just like these — or better still, think about implementing their successful money moves. 

Here are the finance to-dos you really want to be all over:

1. Building a financial plan to help you achieve those big life goals.

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It's the only way to go if you want to meet the financial goals you've set — whether that's getting out of debt, buying a house or car, starting your own business, or setting yourself up for early retirement. 

For any financial plan you'll need to have a timeframe and a monthly budget, which will help you understand where your money goes (review it on an ongoing basis), plus a buffer for those unforeseen fluctuations. Check out this blog post for some great tips around creating a plan and managing your budget.

2. Automating transfers between accounts.

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Automating money transfers is where it's at — as all finance-savvy people know. Setting up separate accounts for things like savings, bills, expenses, holidays and your social life — and then automating transfers into them straight after you get paid — can help eliminate those regrettable splurges and impulse buys.

3. Thinking about investing as well as saving.

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Interest rates of savings accounts can be frustratingly low (you might even be losing money when you factor in inflation), so getting stuck into investments can sometimes be a better way of accruing wealth, as it may give you the opportunity to earn a higher return. In saying this, depending on what your financial goals are, they serve different purposes. 

People often mistakenly think investing is complicated, or that you need a big, hefty deposit to kick things off — but with options like Spaceship Voyager you can start investing with as little as you like, as there's no minimum investment required. Plus, it's about as simple and straightforward as investing gets, which may be a good option for total beginners.

4. Thinking about superannuation early to make the most of compound returns.

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It may sound obvious, but smart money people start investing early — which also means being on top of your super. The sooner you start contributing to your superannuation, the more time you have to take advantage of compounding returns — which is basically when you earn money on the money you have already invested. 

Compound returns can be powerful, as they snowball the dollars you have invested — and as superannuation uses compounding returns to grow your balance, it may be worth thinking about topping up your super whenever you can.

Before making voluntary contributions, be sure to consider whether you have enough surplus income to do so, as well as understanding that you won’t be able to withdraw these funds before meeting a condition of release. 

5. Managing risk through diversified financial products.

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If you're keen to start investing, you need to know about diversified investments, such as index funds and managed funds. You may have already heard of them through the likes of Warren Buffet and they're well regarded for good reason. 

These funds are made up of bundles of shares from across hundreds or thousands of companies. Having diversified investments means you don't let too much of a particular stock or asset type, such as company shares, property or crypto, outweigh the rest of your portfolio. This is because if one of them is having a bad week on the market, the rest of your portfolio is less likely to tank.

6. Consolidating your super funds.

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Having superannuation in lots of different places can make life complicated — and can sometimes cost money if we're paying multiple fees and multiple insurance premiums. Bringing them together under one chosen super fund may help you keep track of your super money more easily.

But it's important to research your options and ensure you've chosen a super fund that’s right for you. You should look at indicators such as performance, fees, risks and insurance premiums when making a decision. This is particularly important now that the Australian Government has passed new legislation, which means you'll be 'stapled' to one super fund as you move jobs. 

Spaceship Super, for example, has diversified investment options that allow you to invest for tomorrow, today. 

Before you consolidate your super into one account, you should consider how rolling over your existing super funds might impact you.

It’s important to note that by rolling over your existing super account(s) to Spaceship Super, your existing super account(s) may be closed and you may lose some benefits, such as life insurance (which Spaceship Super does not currently offer). Also, think about where your future employer contributions will be paid.

7. Considering going harder on salary sacrificing.

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Salary sacrificing is when you send part of your salary to your super fund before it even hits your account, pre-tax. Adding a few more dollars in the way of additional super contributions may be a strategy for building future wealth, especially when you factor in compounding returns (as per point five!). 

Some people who started salary sacrificing later in life wish they’d started salary sacrificing earlier, so you may want to look into this option further. 

8. Choosing investments that are aligned to your values.

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If you're looking to find a new investment portfolio, you may want to consider one that gives you exposure to the brands and organisations you personally know and like — and what best represents your interests, values and the kind of future you want. 

If you're looking for a sustainability-focused investment, Spaceship Voyager has launched the Spaceship Earth Portfolio — which invests in companies that have a positive impact on people and the planet by contributing towards advancing one or more of the UN Sustainable Development Goals (SDGs). Read more about it here. 

9. Having investing in property in mind.

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Yes, the property market in Australia is certainly booming, so if you're in the position to do so, putting money towards an investment property can be a smart strategy for creating wealth throughout your life. It works best long-term and can deliver a steady stream of income later in life — perfect for that early retirement we're all dreaming of. 

Knowing the right time to invest in property can be a challenge. The financially savvy will have a clear idea of how much is needed for the entire purchase process before they begin, and also consider seeking personal advice during the process.

10. Seeking out the best sources of financial education.

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Devoting free time to reading finance blogs is not everyone's cup of tea. But nowadays there are a tonne of easy-to-read money blogs and entertaining finance podcasts. Learning how to grow your wealth might be more fun than you realise.

11. Considering getting professional financial advice.

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Getting professional advice, tax or financial, may help in making more informed decisions about personal finances. The decisions made today will have an impact in the future — both good or bad. When it’s good, it can really make a difference to your personal finance. And when it’s bad, it's bad! Seek out recommendations from friends to ensure you get someone at the top of their game — which is sometimes the hardest part!

12. Having control over credit cards and Buy Now Pay Later products.

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Buy Now Pay Later products and credit cards can be useful IF you're able to control how much you use them. On the flip side, however, they can lead to impulse buying that puts you in unnecessary debt, which may be hard to break free of. 

Having debt can obviously have setbacks when it comes to building wealth. It can also interrupt your savings plans, so consider products such as credit cards or BNPL if and when you're confident with your budgeting and educated enough when it comes to different financial products. 

If you're struggling to get things in order financially due to escalating debt or out-of-control bills, you can access free financial counsellors through the National Debt Helpline. 

13. And finally, only taking on "good" debt — and paying it back fast.

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Debt can sometimes be necessary or appropriate if it serves the purpose of making you more money in the future (AKA 'good debt') — think mortgages and student loans. But how you manage these debts may impact how you grow your wealth. 

Money-savvy people pay off their debt as early as possible in order to manage the interest on it — and will ultimately have a strategy to pay it off, whether that's consolidating it or cutting expenses elsewhere to allow for higher debt repayments.

Spaceship Super offers forward-thinking investment options, which helps you live the life you want to live. It's simple and easy to join — sign up for Spaceship Super in just five minutes today.

Spaceship Capital Limited (ABN 67 621 011 649, AFSL 501605) is the issuer of the Spaceship Origin Portfolio, Spaceship Universe Portfolio, and Spaceship Earth Portfolio (Spaceship Voyager).

Spaceship Capital Limited is the promoter of Spaceship Super. Spaceship Super is issued by Diversa Trustees Limited (ABN 49 006 421 638, RSEL L0000635) as trustee of the Tidswell Master Superannuation Plan (ABN 34 300 938 877) (Fund). Spaceship Super is a sub-plan of the Fund.

The information in this advertisement is general in nature as it has been prepared without taking account of your objectives, financial situation or needs. You should consider the relevant Product Disclosure Statement and Reference Guide, along with the Target Market Determination, available on www.spaceship.com.au, and obtain appropriate financial and taxation advice, before deciding whether Spaceship is right for you.