I think it’s fair to say that what’s happening in Victoria and the threats of second waves elsewhere has given everyone a sense of déjà vu.

Just as it felt like everything was returning to something resembling normality (or the new normal at least), suddenly face masks are the most talked about thing in town.

As we perhaps take a step back to take a step forward, this can again become a time when stress over money rears its head. Money is always the number one cause of stress, even when times are good. In times of uncertainty, financial stress is magnified.

So, I think it’s another great time to remind everyone of the easiest way to make money… stop paying ‘Lazy Tax’.

Lazy Tax is simply paying too much because you’re too lazy to shop around for a better deal. Big banks and businesses rely on us not shopping around! I’m sure you’ve noticed how new customers get great deals that aren’t offered to existing customers.

In my career as a financial adviser, I’ve seen many people go to great lengths to try and reduce their tax bill, often without considering the long-term implications of their actions. Let’s be honest, no one wants to pay more tax than they have to, but Lazy Tax is something most people seem happy to pay month after month, year after year. This Lazy Tax adds up to a fortune over time.

To stop paying Lazy Tax, all you need to do is make a list and work your way through it. Don’t try and do it all at once or it will seem like hard work and you’ll likely find something else to do. Pick one thing a week and work your way through the list.

Your list might include:

• Your mortgage (get a mortgage broker to do the work for you!)
• Your insurances
  • car
  • home and contents
  • private health insurance
• Your phone and internet
• Subscriptions
• Gas and electricity

There are plenty of comparison websites that can help you see where you can create savings. We could be talking about thousands of dollars a year. Sometimes it helps to think about it in other ways – the money you save in Lazy Tax could be the money that pays for your annual holiday.

Why not add up the savings as you go. Write the savings next to each bill on your list and then add up the cumulative savings over time.

Don’t just do this exercise once. Check these things every 12 to 24 months to make sure you’re still getting a good deal.

HERE’S THE TRICK: In many cases, once you find a better deal, you can call your existing provider and ask them to match it. Often they will give you a better deal straight away because it’s better for them to keep you as a customer than lose you and have to replace you. If they won’t come to the party, simply take your business elsewhere.

Get rid of Lazy Tax, then combine it with other wealth creation and tax-effective strategies and all of a sudden, the trajectory of your financial future looks a whole lot better!

What better time than a global pandemic to start reducing the amount you are leaking out in Lazy Tax! If you need a hand with planning for your financial future, perhaps it’s time to get some independent financial advice.

Cheers,

Daniel