Having a successful and healthy relationship with money is something that can take a lifetime to build. Even if you’re only beginning on your journey now by informing yourself, and reading a few articles, you should feel proud. It’s Deadly to start getting a grip on your finances at any point of your life. But also, don’t feel shame if you haven’t always paid attention, or always been great with money, as this is something that can change with a little help and determination. This is my story, and I don’t mind admitting that going from square one to a healthy financial position wasn’t straightforward.

Recently I hit a huge learning curve in my own financial plan as I started working with a new employer. It was my first time landing a full time position, and my salary was going to be something that was negotiated and then set, as it is a position I intend to stay on into the future, it was really important to me that there was a good initial figure and that there was also the possibility for growth into the future. However, in my salary structure, there were options for some pretty great financial benefits that I had never really heard of. Taken by surprise, I decided to do some research and get some advice from an accountant through my new employer’s accounts team.

The aspect of my salary structure that I was really unsure of, and had never really heard anything about was “salary sacrifice”. It’s also called “salary packaging” and it is a tool that is used across a vast number of industries to assist employees in paying a reasonable amount of tax, while funnelling a certain portion of your salary into a designated area that benefits you.

If this sounds complicated, don’t worry – it is. But, getting an essential understanding can be really helpful, as salary sacrificing can help suitable employees in a number of ways.

Like I mentioned, many different industries use salary sacrifice, and if you’ve recently started a new job or are currently in a role that may be eligible, it may be worth investigating if it’s right for you. Depending on the kinds of salary sacrifice options you have, you may be able to reduce your gross income – and in turn be liable for less tax – while receiving a non-cash benefit.

Some of the categories that are sometimes eligible for salary sacrifice are loans, cars and childcare costs. In some cases, it can leave you paying far less on your tax, for things you would already end up paying for.

I had no clue that this process existed until I began looking at all the great options I had, and quickly found a way to structure my salary so that I pay my tax responsibly, while also having my nominated plan paid on a regular basis. In a way it makes paying for some recurring and costly things feel more carefree, whilst also allowing me to have more financial freedom in the long run. So, if you’re eligible, definitely look into salary sacrificing, as it could be a big learning curve for you to overcome in your financial journey.

Like every article on this website, this is not personal financial advice. To learn more about your super options, you can speak to your fund or your employer.