Money Management

“An investment in knowledge pays the best interest.”

Benjamin Franklin

Being in control of your spending is very important for your wellbeing. But it is sometimes easier said than done. There are proven strategies to help you achieve your financial goals and set you well for the future.

1.       Track your spending

You need to understand where your money goes. The easiest way to do that is to track your spending over a period of time. This will allow you to control where you spend your money and to take charge of your finances.  

2.       Create budget

Once you have the understanding of your spending patterns and what is important to you, you are in the position to create a simple budget. The aim is to have a realistic budget that will help you get closer to your financial goals in shorter period of time. This should be a very simple Excel template where you list your expenses and income.

3.       Build a contingency

You should build a contingency for emergencies that might come. It is a good idea to have at least $1,000 in your contingency account that you do not touch unless it is for the purpose for which it was set up.

4.       Grow savings

You need to start savings plan no matter how small it is. Start with what you can afford and grow it over time.

5.       Pay yourself

You should pay yourself for what you need to do between your pays. It should be a realistic figure.

6.       Pay your bills on time

It is important that you pay your bills on time. If it helps, you can automate your payments, which will also save time.

7.       Wait before you buy

There are new things that appear regularly and we can be tempted to buy even if we don’t really need them. It is good strategy to think about it for at least a day and if you feel that you really need to buy it afterwards, you can proceed to do that.

8.       Cut back on the unnecessary spending

There are many different subscriptions that we might have. Sometimes these are not used or certainly not used enough to justify purchases. Review your subscriptions and see what you can cut or reduce.

9.       Start an investment for your future

You should think long term. Investment in your superannuation is one of the key investment strategies for your future. This will normally be paid by your employer on top your salary. It is important to consolidate your superannuation into one account to ensure that you are not paying additional fees.

Taking small steps now will pay off in your future. It is important to start and be disciplined and consistent. You’ve got this.