Sometimes we need to invest money to save us money. It sounds counterintuitive, why spend when you can save?
For unexpected instances in life, sometimes expenses incurred cost more than our coins in our savings piggy bank.
Here are some expenses that can end up saving you money and stress, if you protect yourself financially by spending some money now to save you more in the future.
Health Insurance is popular in Australia because of all of its benefits. While Medicare is a wonderful healthcare system, Australians are left with some out of pocket expenses not covered by Medicare.
By investing in health insurance, your extras can be covered and bonus perks can be received.
Private health members have additional coverage that not only assists them in situations where an accident could occur but also in day-to-day life. For example, if a person has extras cover, they can usually receive good deals from optometrists for new pairs of frames and contacts, compared to if they had to pay upfront.
Health Insurance includes hospital cover and/or extras cover:
Hospital Cover means the person being insured has rights as a private patient and can be treated in a private hospital or in the public hospital as a private patient. Often with the latter, the patient has the choice of doctor or specialist they see. Sometimes, hospital cover assists with the related medical expenses.
Ambulance fees and hospital bills are incredibly expensive and health insurance reduces these costs. While we hope not to need these services, it can be a nasty shock to our bank if we suddenly find ourselves in this situation.
Extras Cover is useful for people who regularly access other health professions whose bills are not covered by Medicare. Examples include allied healthcare workers like physiotherapists, dentists, orthodontists, optometrists, chiropractors.
There are different levels of cover depending on your insurance provider, with the levels usually being classified as Gold, Silver, Bronze, or Basic.
Extras cover is beneficial for patients who see allied healthcare professionals regularly, as it saves them hundreds of dollars in total for their appointments and visits. Extras cover is not often paid by people who do not access these services as they do not see great value in this investment.
Compulsory Third Party (CTP) Insurance is a requirement for all drivers when they register their vehicles in Australia. Besides this, other car insurance like Comprehensive Car Insurance, Third Party Property Damage, Third Party Fire and Theft, and additional covers, are optional.
Just because they are optional does not mean they are not worthwhile. It is recommended that if you can afford Comprehensive Car Insurance you should take it, especially to protect yourself from uninsured drivers on the road.
Car insurance saves you money in the long run because the cost of repairing damages, as well as any bills incurred from injuries if you are at-fault can cost more than the average annual wage.
We hope we never get in an accident, but accidents do happen, most often when we least expect them to. Without car insurance, you could be out of pocket for hundreds of thousands of dollars and struggle financially.
Save yourself the stress now by considering your options other than Compulsory Third Party (CTP) Insurance. Insurance providers have payment plans available to assist you if you cannot afford upfront annual insurance costs.
Despite some people thinking accountants are boring, they are actually very useful people. They are fantastic service providers for all things financially related, including tax and superannuation consolidation.
If your accountant does your tax correctly you are all set to go. If you leave it to yourself to do and if you are not qualified to do a hefty tax return, you could process your tax return incorrectly. An incorrect tax return could result in loss of money for you, or in dire circumstances, a fine from the Government for misleading information.
While this seems a drastic case, mistakes do happen and it is better to be safe than sorry. Leave it to the professionals to ensure you do things the correct way.