Want financial stability? Watch these jobs

Want financial stability? Watch these jobs!

You’d be hard pressed to find an Australian who isn’t striving for financial stability and employment is a big part of making that happen.

While we’re often told to choose a job we love the more practical amongst us will know that picking a job in a thriving industry is the best way to ensure job security.

Recent research from IBISWorld has outlined which industries are set to flourish in 2015-16 and beyond — and which ones will flop.

“Whether you are a school leaver, professional or someone keen to change careers, it is vital to be realistic about job prospects and to investigate your preferences thoroughly to maximise the payoff from education and upskilling in your chosen field,” Dan Ruthven, Australia General Manager for IBISWorld, noted.

Australia’s hottest industries

Good news for Australian cotton growers with the cotton industry topping the list of projected growth trades over the next year. With an expected growth rate of almost 20 per cent Aussie cotton farmers will be laughing all the way the bank.

Internet publishing and broadcasting come in second place with an almost 10 per cent projected growth rate. Organic farming, houseware retailing and university and other higher education round out the list with around 5 per cent growth expected in each sector.

For people already working in these areas job security is all but assured with a steady flow of work expected to continue in the near future.

Industries on the decline

For Aussies employed across the petroleoum and gemstone mining industries the outlook isn’t as positive. These trades topped the list for industries set to fall, along with contract mining services, well and truly signalling the end of Australia’s mining boom.

Other industries to get out of while you can include printing businesses and nightclubs who will see a respective 4 and 3 per cent fall.

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Brush up your skills

If you want to shore up your employment prospects or job stability, it pays to be working in the right industry. 

If you’ve got a penchant for all things digital or are an information technology whiz, you might find that your future career outlook is remarkably positive.

But if your current career choice isn’t heading in the direction you’d hoped for, extra training to polish up skills that will be sought-after in growth industries could be a smart move.

Whether you undertake part-time study while you work or leap into full-time study is up to you. There’s a range of education providers that can help take your existing abilities and turn them into skills that are highly favoured by employees.

Get the basics right

As with any job, there are some skills that will be valuable no matter your career path. Even if you’re not working in one of IBISWorld’s growth industries, you can still make yourself a valuable employee. 

For one thing, you can’t undervalue strong communication skills. From the ability to write reports succinctly to give instructions in a clear, understandable manner, there are plenty of instances when sound communication will benefit your work. 

The ability to band together and work in a team is an incredibly valuable skill to possess, too.

Whether you’re nearing the top of the corporate ladder or still learning the ropes of a new job, having a grasp on essential skills could help you shore up your job security. And when those bonuses roll in, be sure to put a proportion into your savings account!

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Learn more about savings accounts

How to open a savings account for my child?

Some banks and financial institutions allow parents to open a bank account for their child as soon as it is born, and start depositing funds to go towards the child’s future.

Children’s savings accounts generally don’t have fees, and are structured to help develop positive financial habits by limiting withdrawals, encouraging regular deposits, and earning interest on the savings, similarly to standard savings accounts.

Can you have a joint savings account?

Yes. Joint savings accounts can be useful for two or more people wanting to combine their savings to meet shared financial goals, including spouses, flatmates and business partners.

Some joint savings accounts require all parties to sign before they can access the money. While less convenient, this extra security can help encourage all parties to meet their shared financial goals.

Other joint savings accounts allow any of the account holders to access the money. These accounts can be convenient for financially responsible couples that trust one another implicitly. 

How to make money with a savings account?

Savings accounts make you money by earning interest on your savings. The more money you deposit, the longer you leave it in the account, and the higher the account’s interest rate, the more interest you’ll be paid by the bank or financial institution, and the more your wealth will grow.

To make sure your savings account makes money and doesn’t lose money, it’s important to maintain a large enough minimum balance that the annual interest earned exceeds any annual fees charged on the account.

Can you set up direct debits from a savings account?

It’s not usually possible to set up a direct debit from your savings account to cover ongoing expenses or bills, as savings accounts are structured around growing your wealth by earning interest on regular deposits, and discouraging withdrawals.

Some transaction accounts allow you to set up direct debits and also earn interest, though you may not enjoy as much flexibility as a dedicated transaction account, or get as high an interest rate as a dedicated savings account.

How much money should I have in my savings account?

A good rule of thumb when working out a minimum balance for your savings account is to make sure that you’ll earn more in annual interest on your savings than what you’ll be charged in annual fees.

If you’re saving with a specific goal in mind, prepare a budget so the interest you earn on your deposits will help you efficiently reach this goal. Online financial calculators may be helpful here.

How do I open a savings account?

Opening a savings account is a relatively simple process. If you’ve found an account with a suitable interest rate, you’ll just need to get in contact with your chosen lender via a branch, phone call or hop online to begin the process. 

You may be required to provide:

  • Personal details, including identification (driver’s license, passport etc.)
  • Tax file number
  • Employment details

Who has the highest interest rates for savings accounts?

As banks frequently change their rates, the most accurate way to know who currently has the highest interest rate is to use a savings account comparison tool.

How does interest work on savings accounts?

The type of interest savings accounts accrues is called compound interest. Compound interest is interest paid on the initial deposit amount, as well as the accumulated interest on money you have. This is different from simple interest where interest is paid at the end of a specified term. Compound interest allows you to earn interest on interest at a higher frequency. 

Example: John deposits $10,000 into a savings account with an interest rate of 5 per cent that he leaves untouched for 10 years. At the end of the first year he will have $10,512 in savings. After ten years, he will have saved $16,470.

What is the interest rate on savings accounts?

As banks frequently change their rates, the most accurate way to look at interest rates on savings accounts is to use a savings accounts comparison tool. When you look at the savings rate check what the maximum and minimum rates are. Often banks will offer you a promotional rate for the first few months which is competitive, but then revert back to a base rate which can sometimes be less than inflation. Ongoing bonus rates are often a safer bet as they will keep rewarding you with the maximum rate, provided you meet their criteria

What is a savings account?

A savings account is a type of bank account in which you earn interest on the money you deposit. This makes it one of the easiest and safest investment tools.

Can I overdraft my savings account?

A lot of savings accounts won’t let you overdraw. Some will allow this feature but you’ll need to apply first. It’s best to read the fine print and check with your lender whether this is a feature they offer. It can be a helpful addition, but as your lender can charge you a fee as well as interest for going into negative numbers, it’s best to avoid overdrafting when possible.

Can you direct deposit to a savings account?

Yes. You can make one off payments or set up regular direct deposits into a savings account. This can be organised easily through online banking or by making deposits in a branch. Talk to your lender to find out the easiest way for you to set up direct deposits.

What is a good interest rate for a savings account?

A good rule of thumb to keep in mind with savings accounts is to look for a rate that is higher than the CPI inflation rate. This number is constantly changing, so check the Reserve Bank of Australia’s page. If you aren’t earning interest above this then the value of your money will go backwards over time.

Can you set up a savings account online?

Yes. Several large and small banks offer online applications for savings accounts, and there are also online-only financial institutions to consider.

Online-only savings accounts are often less expensive than other savings accounts, though they may not offer the same flexibility, features, or face-to-face service as more traditional savings accounts.