Working and Budgeting

Friday, June 1, 2012

Updated: 24/11/2015

Today on Let's Get Working I am talking to George, who is a Chartered Accountant. He'll be giving us information on budgeting and the advantages of working instead of living on a pension.

What are the advantages of working as opposed to being on a pension?

When you're on the pension it affects all aspects of your life. It isn't a lot of money so it limits what you can do and affects your overall attitude. Working on the other hand has many advantages.

• Learn time management skills.
• Become part of a team and gain a sense of worth.
• Increased social interaction gives you the opportunity to meet new people and make new friends.
• Gain independence and money management skills because you're now earning more
• The opportunity to build a career or advance to higher positions that earn more
• A reason to get out of bed in the morning
• An Increase in independence for yourself and your carers.

How will working affect my pension?

• After earning $150 a fortnight 50c per dollar is taken off your pension.
• Earning $300 per fortnight means $75 will be taken off your pension.
• When you start work you have a certain amount of working credits that get used up before any of your pension is taken. So you can use this extra money to buy work clothes, etc.

You can go to the Income Test Page to learn more.

How can I set future financial goals?

By getting a really good idea on how much you spend on daily basis, how much you pay for petrol, food, health care rent or a mortgage. You can budget to try and put some money away for a rainy day

Google 'Money Smart' this is a basic budgeting planner that is easy to use or click on this link - https://www.moneysmart.gov.au/ then click 'Budget Planner' which is up on the left.

Until next time,
Steven

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