Credit Smart Solutions

Should You Pay Off Debt or Save First? (Australia 2025) This is one of the biggest financial dilemmas Australians face — especially in uncertain times like 2025. Start with an Emergency Fund Before aggressively paying off debt, build a small emergency fund of $1,000–$3,000 to cover surprise expenses. High-Interest Debt Takes Priority If your debt has interest rates above 10% (like credit cards), paying it off saves more money than most savings accounts can earn. Balance Both with a 70/30 Strategy Put 70% of extra cash toward high-interest debt Put 30% toward savings goals or emergency fund Use Windfalls Wisely Tax refund? Bonus? Split it — pay down debt and top up savings. That way you build peace of mind and reduce what you owe. Emotional Factors Matter Too Saving builds a sense of progress. Paying off debt relieves stress. Both matter. Choose what motivates you to stay consistent. Speak with a Financial Coach Everyone’s situation is different. A professiona...

How Much Emergency Savings Do Australians Really Need in 2025? With rising living costs and economic uncertainty, having an emergency fund is no longer optional — it's essential. What Is an Emergency Fund? An emergency fund is money set aside for unexpected expenses — job loss, medical bills, urgent repairs, etc. Recommended Amounts (Australia 2025) Single with no dependents: $5,000–$10,000 Couples with kids: $10,000–$25,000 Freelancers/gig workers: 6+ months of expenses Why It's Critical Prevents credit card debt: Avoid high-interest borrowing Mental peace: Sleep better knowing you're covered Faster financial recovery: Bounce back quicker after setbacks Where to Keep It High-interest online savings accounts Offset accounts linked to your mortgage Separate from daily-use accounts Tips to Build One Automate savings weekly or monthly Start small — even $10/week helps Use tax refunds or side hustle income Final T...

Emergency Fund: How Much Do Australians Really Need? If the past few years have taught us anything, it’s this: life is unpredictable. Whether it’s losing a job, unexpected medical bills, or a car breakdown — having an emergency fund can be the difference between stress and stability. But how much should you save? What Is an Emergency Fund? An emergency fund is money set aside to cover unexpected expenses. It prevents you from relying on credit cards or personal loans during financial shocks. How Much Do You Need in Australia? Life Situation Suggested Fund Single with no dependents 3 months of living expenses Married or with kids 4–6 months of expenses Gig/freelance income 6+ months of expenses How to Build One Start with a small goal ($1,000 or 1 month’s rent) Automate savings into a separate high-interest savings account Cut non-essential expenses until your fund is solid Use windfalls (tax refunds...