Here are some simple tips on how you can manage your money and achieve your financial goals.
- Learn how to cope with stress without spending
You’re not alone, many of us spend more in stressful periods of our life! This may temporarily cause you to relax and focus on something else for a short period of time, however it doesn’t relieve stress in the long term. We know that reducing your stress levels is easier said than done, however little effort can be used in relieving your stress. Try starting a new hobby, research breathing techniques and in serious cases talk to a professional.
- Say no to peer pressure
Don’t spend money that you don’t have just because the people around you are! A simple yet hardly completed task by most of us involves bringing your lunch to work, yes eating out can be a tastier and easier, buts it’s not the best option for your wallet. Always remember it’s okay to eat out and have fun here and there but if you’re struggling with money it’s okay to say no to an expensive night out and going out for lunch. If you find it hard to believe that eating out is causing you to be in a bad financial position, keep your receipts and add up the costs at the end of the week so you can find out how much one meal a day is really costing you.
Unfortunately now we will be getting into the serious stuff, as saving money can be a little more time consuming than just completing the above.
- Make a budget
Look through receipts and bank statements to identify all your regular expenses and then deduct these from your income. Once you see the amount that you are actually left with after being paid, you will have a better understanding of how well you are doing financially. With the money that’s left over after you pay your bills, home loan etc. give yourself a goal of what you need to save each time as your pay check comes in, and transfer this amount into your savings. And always remember, don’t take this money out of your savings account unless it is absolutely necessary! After all it’s called your savings for a reason.
- Don’t let your credit card control you!
Australia’s credit card debt is around $32 billion, and the interest you pay on these cards isn’t getting this number any lower. Rather than give you the obvious tip which is reducing the amount of purchases you make on your credit card, which we know is very difficult! Set up direct bank account and start paying of that debt, the quicker you pay it off the more at ease you will be and the less interest you will have to pay in the future.
- Set goals for yourself!
Tell yourself that by the end of the year you want to have saved enough to a buy a new car, a house or even to be debt free from your credit card. Stick it on your wall or in your diary, basically anywhere that is visible to you because let’s be honest sticking to a budget isn’t easy and there will always be temptations out there. So it’s important to focus on that end goal!
Remember goals must be SMART!
Be Specific! Why do you want to save that specific amount and how you will save that amount?
Make sure your goal is Measurable! It’s as simple as attaching a number to your goal.
This flows through to ensuring your goals are Achievable! After having a look at your budget set a reasonable amount of what you want to save.
Are your goals Relevant! These are your financial goals, they should fit into your long term plan take your circumstances into consideration, such as if you are a caregiver or parent or soon to become one. It’s very important to be financially prepared for anything.
And lastly make sure your goal is Timely! Have an exact date of when you want to achieve your goal.
Thanks for reading!