And how you can avoid them

Life can get pretty busy, and it is easy to overlook financial essentials.
In this article, CareSuper takes a look at some common money mistakes — and the solutions.

Money mistake number one: not taking insurance seriously
By the time people have been in the workforce for a few years, they’ve usually accumulated some financial assets, and perhaps a family that they need to protect.
If you were sick or injured, how would you pay the bills? And if you passed away, would your family be taken care of?
CareSuper says the solution is to take some easy steps to properly protect yourself.
To make sure you’re adequately protected, CareSuper says a good first step is to check your super account to see what insurance you hold there. You can change this amount to better safeguard your assets and your loved ones, or you can apply for new cover too.
Holding insurance in super generally means less health checks since eligible members receive automatic cover. It could also be more cost effective as the fees are paid from your super balance rather than your take-home pay.
Insurance through super is often cheaper as insurance policies can be bought in bulk, which is generally cheaper than insuring yourself individually, notes CareSuper.

Money mistake number two: not taking advantage of tax incentives
You may be a while off retirement, but it is not too early to be thinking seriously about your super balance. Super is generally taxed at a lower rate than other investments or savings and understanding how tax incentives work is important so you’re not paying more than necessary.
CareSuper says you should make your money work for you and not the tax man, by putting extra into your super now.
It explains that by doing so, you will have years to benefit from tax incentives linked to salary sacrificing, after-tax contributions and spouse contributions.
Even small amounts can take the pressure off accumulating a comfortable balance later in life. Not sure what tax incentives you should be making the most of? CareSuper invites you to talk to its team to work out how much you could save.

Money mistake number three: not being confident enough to invest
Being financially confident and understanding how investment markets work can really change your financial future. If you’re not sure where to start, the good news is you don’t have to dive right in.
CareSuper recommends that you learn the investment fundamentals through your super, starting your investment education by looking at how your super is set up.
It advises you to learn how the different investment options are constructed and how the different growth and defensive assets are designed to suit a variety of risk tolerances and expected investment returns.
You’re in control of your super, and by learning more, you can build up your investment knowledge and spark a passion for wealth creation.

Service you expect and care you deserve
When you’re a CareSuper member, the provider says it is with you every step of the way.

For more information, call CareSuper on 1800 005 166 or visit www.caresuper.com.au

Disclaimer: CareSuper Pty Ltd (Trustee) (ABN 14 008 650 628, AFSL 238718). CareSuper (Fund) (ABN 74 559 365 913). Any advice is provided by CareSuper Advice Pty Ltd (ABN 78 102 167 877, AFSL 284443). Consider the PDS and TMD at caresuper.com.au/pds. A copy of the Financial services guide for CareSuper is available at caresuper.com.au/fsg This is general information only and doesn’t take into account your objectives, financial situation or needs. Before making a decision about CareSuper, you should consider if this information is right for you. You may also wish to consult a licensed financial adviser.