Much of the 2025 Federal Budget was already known, following a volley of pre-election spruiking for votes. However, Treasurer Jim Chalmers had one surprise up his sleeve—$17 billion in tax cuts.

The first round of cuts will take effect on 1 July 2026, with the second round commencing on 1 July 2027. Once fully implemented, these cuts will save the average earner $536 per year.

The Treasurer also outlined five priorities for his fourth budget: easing the cost of living, strengthening Medicare, increasing housing supply, investing in education, and boosting economic growth.

He described it as a plan for “a new generation of prosperity in a new world of uncertainty” that would help “finish the fight against inflation.”

The big picture

The Budget deficit has made an unwelcome—but not surprising—return. The Albanese government has been clear that Australia was heading back into the red, and Treasurer Jim Chalmers says the $42.1 billion deficit is smaller than forecast at both the last election and the mid-year update.

Gross debt has been reduced by $177 billion to $940 billion, saving around $60 billion in interest over the decade.

Nonetheless, Australia is navigating choppy international waters amid a “volatile and unpredictable” global economy.

The country will feel the shockwaves from escalating trade tensions, two major global conflicts—in Russia-Ukraine and the Middle East—and slowing economic growth in China. Treasury predicts the global economy will grow by 3.25 per cent annually over the next three years, marking the longest stretch of below-average growth since the early 1990s.

However, the Treasurer says Australia is well positioned to manage these difficult conditions.

The Australian economy has “turned a corner” and continues to outperform many advanced economies. Inflation has moderated “significantly,” and the labour market has exceeded expectations. Meanwhile, growth is predicted to rise from 1.5 per cent to 2.5 per cent by 2026–27.

Addressing the cost of living

With the rising cost of living expected to be central to the upcoming election campaign, the Budget aims to provide greater support for those doing it tough. Key measures include further tax cuts, changes to Medicare and the Pharmaceutical Benefits Scheme (PBS), reductions in student debt, and wage increases for aged care and childcare workers.

Beyond the new tax cuts set for 2026 and 2027, the government will raise the Medicare levy low-income thresholds from 1 July 2024.

Energy bill relief is also being extended until the end of this year. At a cost of $1.8 billion, every household and around one million small businesses will each receive $150 off their electricity bills, paid in two quarterly instalments.

The government claims this energy bill relief has contributed to a 25.2 per cent drop in electricity prices across 2024.

Students aren’t overlooked in the Budget, with a $19 billion reduction in student loan debt. All outstanding student debts will be reduced by 20 per cent, alongside a promised reform to make the student loan repayment system fairer.

The government is also targeting cost-of-living pressures at the checkout. It plans to support fresh produce suppliers in enforcing their rights, simplify the process of opening new supermarkets, and crack down on “unfair and excessive” card surcharges.

Look for a clean bill of health

Almost $8 billion will be spent to expand bulk billing—the largest single investment in Medicare since its creation 40 years ago.

Treasurer Chalmers says that by the end of the decade, nine out of ten GP visits should be bulk billed, with an additional 4,800 bulk-billing practices.

There will also be 50 more Urgent Care Clinics nationwide, bringing the total to 137. Meanwhile, public hospitals will receive a $1.8 billion funding boost to help cut waiting lists, reduce emergency room wait times, and address ambulance ramping.

Cheaper medicines

The cost of medicines is also in the government’s sights. The maximum cost of drugs on the Pharmaceutical Benefits Scheme (PBS) will be lowered for everyone with a Medicare Card and no concession card. From 1 January 2026, the maximum co-payment will be lowered from $31.60 to $25.00 per script and remain at $7.70 for pensioners and concession card holders. Four out of five PBS medicines will become cheaper for general non‑Safety Net patients, with larger savings for medicines eligible for a 60‑day prescription.

An extra $1.8 billion is also being invested to list new medicines on the PBS.

Increasing the housing stock

The government’s previously announced target of 1.2 million new homes over five years has resulted in 45,000 homes being completed in the first quarter.

The Budget includes an additional $54 million to encourage modern construction methods and $120 million to help states and territories cut red tape.

With building activity set to increase, more apprentices are needed. To address this, the government has announced financial incentives of up to $10,000 to encourage more people to take up apprenticeships in building trades. Some employers may also be eligible for a $5,000 incentive for hiring apprentices.

The Help to Buy program, which allows homebuyers to enter the market with lower deposits and smaller mortgages, will be expanded with an additional $800 million. This funding will raise property price and income caps, making the scheme more accessible.

To help increase housing supply, foreign buyers will be banned from purchasing existing dwellings for two years from 1 April 2025. Land banking by foreign owners will also be outlawed.

Recovering and rebuilding

The damage from ex-Tropical Cyclone Alfred and subsequent rains in Queensland and northern New South Wales is so extensive that it is expected to reduce quarterly growth by a quarter of a percentage point.

Flooding has damaged infrastructure and disrupted supply chains, as well as agricultural production, construction, retail, and tourism activity.

The government anticipates disaster support costs of at least $13.5 billion. As a result, the Budget includes $1.2 billion for a contingency fund to improve responses to future disasters.

Looking ahead

With escalating rates of family violence and an alarming increase in the incidence of violence against women, the Federal Budget includes funding to support a range of programs.

More than $925 million will be spent over five years to provide support for victims leaving a violent intimate partner relationship and a program to strengthen accountability for systemic gender-based violence in higher education.

The government will invest more than $56 million over four years to improve access to sexual and reproductive healthcare for women, including training GPs to provide better menopause care.

A newly released national gender equality strategy will drive government action on women’s safety, sharing, economic equality, health, leadership, and representation.

In a move to take the pressure off parents, superannuation will be paid on government funded Paid Parental Leave (PPL) for parents of babies born or adopted on or after 1 July 2025.

Looking ahead

Despite concerning events on the world stage, Australia’s economy is emerging “in better shape than almost any other advanced economy.”

Inflation and unemployment are falling, and wage growth is expected to be stronger. To support ongoing economic growth, the Federal Budget adds $22.7 billion to the government’s Future Made in Australia agenda.

This includes additional investment in renewable energy and low-emissions technologies, as well as an expansion of the Clean Energy Finance Corporation. The plan also includes more than $15 billion in support for private investment in hydrogen and critical minerals production, clean energy technology manufacturing, green metals, and low-carbon liquid fuels.

As the trade war escalates, the Budget allocates $20 million to a Buy Australian campaign.

“The plan at the core of this Budget is about more than putting the worst behind us. It’s about seizing what’s ahead of us,” the Treasurer says.

If you have any questions about the Federal Budget measures announced and how it may impact your financial future, please don’t hesitate to contact our financial advice team.

Information in this article has been sourced from the Budget Speech 2025-26 and Federal Budget Support documents.  It is important to note that the policies outlined in this article are yet to be passed as legislation and therefore may be subject to change.

As we say goodbye to the heat of summer, we can look forward to enjoying the cooler days ahead. Along with the drop in temperature, the RBA brought much relief to mortgage holders by cutting the cash rate by 25 basis points in February. The cash rate is now sitting at 4.10 per cent following the first rate reduction since November 2020.

Inflation remained steady in February at 2.5 per cent, with core inflation at 2.8 per cent. However, the RBA remains cautious and has not guaranteed further cash rate cuts in 2025. Some economists are predicting additional cuts this year, but time will tell.

While ongoing tensions persist between Russia and Ukraine, as well as in the Middle East, and with a looming trade war due to Trump’s proposed tariffs, the global economic outlook remains unpredictable.

US markets reacted to lower-than-expected consumer spending and continued geopolitical uncertainty, resulting in another month of volatility.

It has also been a turbulent period for the Australian share market, with the ASX 200 losing ground earlier in the month, bouncing back to reach an all-time high, only to start falling again, closing at its lowest point in two months.

A similar pattern has been seen with the Australian dollar, which climbed to a high of $0.64 USD in mid-February before losing momentum and now hovering around $0.63 USD.

If there is something affecting your financial situation that you would like to discuss, please do not hesitate to reach out to our team.

Most people with assets will pay more for aged care if they enter the system after 1 July 2025.

Back in October, we shared information about the aged care fee reforms aimed at enhancing the quality and sustainability of aged care in Australia.

Now, with more details available and these changes fast approaching, it’s critical that people don’t leave care decisions too late. Aged care planning takes time, and delaying could mean higher costs and fewer choices. These reforms will impact the fees associated with home care and residential care services, so now is the time to get informed and consider any necessary action.

Whether you’re currently receiving care or supporting a loved one on their care journey, it’s essential to understand what these changes could mean for you.

Aged care fee reforms from 1 July 2025

A new aged care system will come into effect on 1 July 2025.  If someone is already in aged care at that time, their fees will stay the same under the old rules.

However, if an existing resident moves to a different facility after 1 July 2025, it’s important to seek advice from one of our aged care advisers to understand how the current rules may still apply.

Accommodation

The main changes for new residents from 1 July 2025 are:

1. Retention fee on Refundable Accommodation Deposit (RAD): Providers will keep a small portion of the RAD as a non-refundable retention fee of 2% per annum for up to five years, with a maximum of 10% retained.
2. Indexing of Daily Accommodation Payments: For residents who choose to pay a daily fee instead of a RAD, the Daily Accommodation Payment (DAP) will increase twice a year (on 20 March and 20 September) in line with the Consumer Price Index (CPI).

There will be no changes to how the family home is treated in the aged care means test assessment process. If a spouse or a “protected person” lives in the home, the property remains exempt from financial assessments. Otherwise, approximately $208,000 of its value (indexed) will be included.

Daily Care Fees

The government will continue to fund all clinical care. Care fees can be compared to the current cost structure as follows:

Home Care (Support at Home)

From 1 July 2025, the Home Care Package system will change to the Support at Home Program, with funding divided into three areas: Clinical Care, Independence, and Everyday Living.

1. New Classification System: Recipients will be assessed into one of ten funding categories to better match funding with their individual needs.
2. Independence and Everyday Living Contributions: The government will cover 100% of Clinical Care costs. However, individuals may need to contribute up to 50% for Independence Services and up to 80% for Everyday Living Services. The amount payable will be based on Age Pension status or Commonwealth Seniors Health Card eligibility.
3. Home Care grandfathering: People with a Home Care Package as of 30 June 2025 will keep the same level of funding under the new Support at Home program along with any unspent funds. Those on the National Priority System or approved for a package by 30 June 2025 will receive an equivalent Support at Home budget when available. If a future assessment qualifies a recipient for more funding, they will transition to the new Support at Home classification once it becomes available.
4. Contribution arrangements: People who were receiving a Home Care Package, were on the National Priority System, or were assessed as eligible for a package by 12 September 2024, will not pay more due to the reforms. Their contributions will remain the same or be lower. If they move to residential care, their contribution arrangements will continue unless they choose to switch to the new program. However, changes to accommodation payments in residential care will still apply, as these are determined by agreements between the resident and their provider.

What does this mean for those already in care?

If you’re already in residential aged care, your fees are unchanged by the new legislation. As mentioned earlier, if there is a more from the current care, it is important to get advice to understand how the impact.

It’s useful to reflect on what happened the last time the rules changed. The current aged care laws, which came into effect on 1 July 2014, did not impose the new fee arrangements on those already in aged care or receiving a Home Care Package.

Where can I find out more about the proposed legislation?

On 24 November 2024, Parliament passed the Aged Care Bill 2024. This Bill becomes the new Aged Care Act, coming into effect from 1 July 2025.For more details, click the link below. https://www.health.gov.au/our-work/aged-care-act

We are here to help, every step of the way

The proposed aged care fee reforms to residential aged care and home care are significant. If you’re unsure about your current situation or how these aged care fee reforms might impact your care situation moving forward, your adviser can put you in touch wit Alteris’ Lifestyle and Care team.

Alteris’ specialist division of financial advisers are accredited in aged care advice and can talk you through all available options and explain the various financial considerations. Their team can also provide full support with ensuring the fees and pension are correct by working directly with your accommodation provider, Services Australia and the relevant government departments. Learn more about Alteris’ accredited aged care financial advisers.

Welcome to summer—a season of activity, last-minute tasks, and celebrations with family and friends. We take this opportunity to wish you and your family a joy-filled and safe festive season!

While headline inflation eased to 2.8% in the September quarter, the Reserve Bank remains firm on interest rates. RBA Governor Michelle Bullock acknowledges that the drop in the cost of living may offer welcome relief for most of us, but the Board’s key focus is on trimmed mean inflation, which still isn’t “sustainably” within the desired target range of 2-3%. According to the RBA, it’s unlikely to reach that range until late 2026.

The share market reacted sharply to the Governor’s comments in the final days of a month that had seen several all-time highs. US President-elect Trump’s promise of 25% tariffs on Canadian and Mexican goods also contributed to the billion-dollar share sell-off. Nonetheless, the S&P/ASX 200 finished November 3.4% higher.

The Australian dollar also took a hit, driven by concerns over potential US tariffs and the RBA’s interest rate outlook. It fell to a seven-month low, dipping below 65 US cents near the end of the month.

In positive news, the ANZ-Roy Morgan Consumer Confidence Index, while slightly down, has remained above 85 points for six consecutive weeks—the first time in two years. Meanwhile, Commonwealth Bank projections anticipate a boost in sales for small businesses, driven by Black Friday and Cyber Monday sales and the upcoming festive season.

If there is something affecting your financial situation that you would like to discuss, please do not hesitate to reach out to our team.

It’s the last month of spring, and with summer on the way, many people are preparing for Christmas and the holiday period.

At its latest meeting, the Reserve Bank of Australia left interest rates unchanged at 4.35%, citing persistently high underlying inflation of 3.5% for the September quarter, which remains above the RBA’s 2.5% target midpoint. This suggests rates are likely to stay elevated for some time, offering little reprieve for mortgage-holding households. The Consumer Price Index rose just 0.2% in the September quarter and 2.8% over the twelve months to the September 2024 quarter, marking the lowest rate in just over three years. Prices fell slightly for alcohol and tobacco, clothing, housing, health, and financial services. Transport costs also fell for the first time since 2020.

Share prices softened during the last two weeks of October, recording the worst monthly performance in six months. The S&P/ASX 200 closed down by 1.31% for the month, after reaching record highs again mid-month.

The Australian dollar ended the month at 65.7 US cents after almost hitting 70 US cents just a few weeks ago. Investors reacted to weaker-than-expected Australian retail sales and stronger US unemployment and retail sales figures.

Iron ore has hit a one-month low at USD 104.08 after the heady highs in January of almost USD 145. All eyes are on meetings in China this month about expanding its stimulus measures. However, post meeting, the stimulus disappointed investors with many investors believing China is keeping its tactical powder dry in play as the Trump-China tariff negotiations build.

Back over in the US, after a long and hard-fought campaign, the US Election finally concluded. Leading up to polling day, it was expected to be a tight race, but the Don (Donald Trump), managed to pull off a historic White House comeback in emphatic fashion. While the future may hold more uncertainty, shorter term US equity markets rejoiced, with the S&P 500 (+2.53%), Nasdaq (2.95%) and Russell 2000 (small cap representative, +5.84%) all surging post the election result. President elect Trump’s policies of supporting lower corporate tax rates, deregulation and industrial policies that favour domestic growth were all positive for the stock market. Kamala Harris was graceful in defeat and highlighted the “importance of a peaceful transfer of power and being a president for all Americans,” Longer term implications are yet to be felt. Mr. Trump’s policies are more inflationary e.g. imposing very high tariffs (e.g. 60%) on China and maintaining larger budget deficits is likely to have a ripple effect to Australia’s trade. Adding other uncertainties such as climate change policy (e.g. backing fossil fuels) and global trade war with China creates an uncomfortable environment.

If there is something affecting your financial situation that you would like to discuss, please do not hesitate to reach out to our team.

Interest rate speculation is rife after the Reserve Bank of Australia (RBA) kept rates on hold at 4.35% last month. Economists now predict it may be several months before rates fall. It’s a different story in the United States, where the Federal Reserve slashed interest rates by half a percentage point in September and forecast two more cuts before the end of the year.

Australia’s inflation rate fell to 2.7% in August, down from 3.5% the previous month, marking the lowest reading in three years. Falling petrol prices and energy bill relief helped drive the slowdown. The jobless rate remained steady in August at 4.2%, with the number of unemployed people falling by 10,500 in seasonally adjusted terms. While spending may be down, our net worth rose for the seventh consecutive quarter. Total household wealth was 9.3% higher than a year ago, largely due to rising house and land values. Consumer confidence is also positive, with an increase in the ANZ-Roy Morgan index compared with last year’s figures.

The S&P/ASX 200 index hit an all-time high near the end of the month at 8,862 points, after reaching a low of 7,687 a few weeks earlier. It closed the month at a respectable 8,266, up 2.2% for the month and 7.89% for the year. China’s plan to stimulate its economy has led to stronger commodity prices, with mining and energy stocks being the main beneficiaries.

If there is something affecting your financial situation that you would like to discuss, please do not hesitate to reach out to our team.

Welcome to spring, a season that can inspire personal, business, and financial renewal. We hope you enjoy the sunshine and warmer weather.

Global stock markets—including the ASX—largely stabilised by the end of August after a turbulent month.

It was a rocky start, with global markets plummeting following news of high unemployment figures in the US and an interest rate move by Japan’s central bank. Despite the drama, the S&P/ASX 200 closed 1.28% higher for the month, marking a gain of just over 10% for the year to date.

A slight drop in inflation, down to 3.5% in July from 3.8% the previous month, had investors watching the Reserve Bank’s reaction. However, most economists agree that there’s little chance of an interest rate cut this year. The Reserve Bank of Australia (RBA) is not expecting inflation to reach its preferred levels until late 2026 or early 2027.

While the cost of living has dropped slightly, partly due to $300 federal government rebates on electricity bills, wages have risen. The Australian Bureau of Statistics reports that wages increased by 4.1% in the year to June, meaning that wages are now keeping pace with the cost of living.

The good news from the market and inflation data contributed to a small upswing in consumer confidence, although there is still much ground to recover after the losses caused by COVID-19.

If there is something affecting your financial situation that you would like to discuss, please do not hesitate to reach out to our team.

Many of us have been experiencing unexpectedly cold temperatures and high rainfall lately, but the good news is that spring is on the way. As the days grow longer and warmer, there is a sense of optimism and renewal.

Market watchers, investors, and mortgage holders, who had been anxiously awaiting the release of the latest inflation data at the end of July, found themselves neither jumping for joy nor collapsing in despair.

The best that could be said about the figures was that they were not as bad as they could have been. At its meeting on the 5^th of August, the Reserve Bank Board announced it was leaving the cash rate at 4.35% despite a modest increase in inflation. The Australian Bureau of Statistics reports that prices rose 1% in the June quarter and 3.8% annually.

Retail sales continue to sputter along, with the latest data showing a 0.5% increase in June, thanks to seasonal sales. However, over the quarter, retail sales volumes fell by 0.3%, marking the sixth decline in the past seven quarters. Meanwhile, building approvals fell by 6.5% in June, following a 5.7% rise the previous month.

The ASX S&P 200 index finished the month strong, with an increase of around 4%, despite a mid-month plunge. However, the Australian Dollar didn’t fare as well, falling below 65 US cents for the first time in almost three months. In the US, the S&P 500 ended the month nearly where it began, after a significant mid-month spike and subsequent fall. For the year to date, it has recorded an increase of almost 15%.

If there is something affecting your financial situation that you would like to discuss, please do not hesitate to reach out to our team.

Giving Australians better access to high-quality and more affordable financial advice is imperative.

One of the fundamental principles for achieving long-term investment success is planning.

In fact, the importance of having a clear financial plan, whether it’s formal or informal, can’t be overstated. As is the importance of sticking to it.

Without a well-documented, detailed plan that incorporates specific goals, there’s a fair chance investors will miss out on key opportunities over time, potentially lose their long-term focus and not attain the financial heights they had hoped to reach.

The consequences of this can range from feeling demoralised to experiencing devastating financial impacts, and it’s evident there’s a strong link between having a plan and individual confidence levels, especially in relation to retirement.

The importance of planning

To this point, Vanguard recently released How Australia Retires study found that Australians with the highest confidence about their future retirement were following a financial plan.

After surveying more than 1,800 working and retired Australians aged 18 years and older, they found that people who have a financial plan are six times more confident about their retirement outcomes than those without one.

Australians with the highest retirement confidence have taken the most purposeful actions to prepare for their retirement. Many have accessed professional financial advice, they’re relatively likely to use budgets and prioritise their savings, and they make regular extra contributions into their super.

Broadly speaking, they know what they need to do to achieve the retirement outcome they desire and are optimistic about entering this phase of their life.

By contrast, they found that Australians with a low confidence about their retirement tend to be the least actively prepared.

Often they’ve never accessed financial advice and they have little understanding of how they can achieve their retirement goals. They also expect to be more reliant on the Age Pension after they retire than those with higher retirement confidence.

In addition, they don’t tend to make regular additional super contributions and are generally less optimistic and more likely to feel disinterested, anxious or worried about this later phase of life.

This is typically the case for older Australians who’ve taken less action to prepare over time.

The role of super

Interestingly, only half of working-age Australians consider super an important component of their retirement plan and they expect to rely on it less than existing retirees.

As part of this, more than half of working-age Australians (54%) estimate their super balance constitutes half or less of their total investment balance.

Indeed, one in four working age Australians highlighted investment property as being a big part of their retirement plan. That compares with only one in 10 retired Australians having investment property as an asset.

But of concern is the fact that while super is an important component of total retirement assets, relatively few people actively engage with their super.

In many cases, super is the second-largest asset people have outside of their home. Yet, one in four Australians don’t know what their current super balance is, and one in two are unaware of what they’re paying in super fees.

And most Australians haven’t had any contact with their super fund, often because they rely solely on their employer’s compulsory contributions.

Increasing engagement

This is an area that really needs attention, and there’s a great opportunity for the super industry as a whole to step up their engagement with fund members.

For example, most Australians don’t really understand all of their available options when it comes to making personal contributions into their super account each year. Even making small additional contributions on top of employer contributions can have a big positive financial impact over time.

So can reducing fees, because higher fees equate to lower returns. Understanding what you’re paying in investment fees allows you to do a comparison with other providers and to potentially switch to lower-cost alternatives.

This is where financial advice can play a crucial role. There’s a strong correlation between the use of professional advisers and retirement confidence.

The survey found that of the Australians who have received professional advice, 44% indicated they were extremely or very confident in funding their retirement. Of those who have never sought any professional advice, only a quarter indicated they were confident.

Which is why giving Australians better access to high-quality and more affordable financial advice, that’s relevant to their specific needs, is imperative.

Financial advisers have an important role to play in terms of recommending the most appropriate investment options to individuals based on their needs, but also in terms of behavioural coaching. Having peace of mind is invaluable.

It’s never too early to engage a financial adviser to map out a financial plan that has the best chance of investment success over the long term, so contact us today, so we can help you on your financial journey.

Please note this article provides general advice only and has not taken your personal, business or financial circumstances into consideration. If you would like more tailored advice, please contact us today.

When life tosses up an unexpected event – such as retrenchment, a medical emergency or even just a big bill to fix the car – it can be nerve-wracking worrying about how to deal with the crisis. And, if funds are short, that just adds to the stress.

But imagine that you have a secret cash stash – an emergency fund – that will cover the costs, giving you the mental space to deal with the problem.

In fact, an emergency fund is the basis for a strong financial strategy and provides a crucial safety net. Regardless of your age or income, it makes sense because the unexpected can happen to anyone.

Without a cash reserve, you may have to rely on credit cards or loans, which can further strain your financial situation and mental health.

An emergency fund gives you the peace of mind to be able to weather the storms that come your way without racking up unwanted debt and interest payments.

How much is enough?

Of course, it can be tough to save when inflation is eating away at your income. Rising interest rates, rents and the cost of groceries are putting a big strain on households. The Australian Bureau of Statistics reports that household savings have declined for over a year as people contend with increased mortgage payments, among other rising costs.

Nonetheless, by putting aside even a small but regular payment into a separate fund you will slowly accumulate enough to cover emergencies.

The size of your emergency fund depends on your own circumstances, but an often-quoted target is enough to cover between three and six months of living expenses.

It may differ if say, you are planning on starting a family and need funds in reserve to cover the difference between parental leave payments and a salary; you have children in school and want to be able to cover school fees for a year or more, no matter what happens; you need to take time off work to care for a family member; or you need to make an unplanned trip.

On the other hand, if you have retired, having a buffer against market volatility can be helpful. If there is a market downturn and your superannuation is not providing your desired income level, a year’s worth of living expenses in an emergency fund can make all the difference to your lifestyle.

The main thing to remember is that if you need to raid your emergency fund, start work on rebuilding it as quickly as possible.

Building your emergency fund

Putting together a budget can help you to analyse how much you can afford to put away every week, fortnight or month. Then, consistently saving until you reach your goal is the key, no matter how small the amount.

It is best to keep your emergency fund separate from your everyday transaction account to reduce the chance of you using your saved funds for regular expenses. One option is to pay yourself first by setting up a direct debit, so your emergency fund grows automatically with no extra action needed from you, and to avoid the temptation to withdraw your savings.

The type of account you choose for your emergency fund is important. It should be readily available so, while shares and term deposits may offer higher returns, they are not quickly accessible when required. Shop around for a bank account that offers the highest interest to get the most out of your hard-earned income.

Building an emergency fund is essential to a strong financial plan, providing a safety net should something unexpected arise. If you are unsure of the best way to set up an emergency fund, we encourage you to contact us. We can provide guidance on the best options for your unique financial situation and help you take steps towards it.

Please note this article provides general advice only and has not taken your personal, business or financial circumstances into consideration. If you would like more tailored advice, please contact us today.