Anything’s possible when it comes to turning one’s financial situation around. Money struggles don’t have to limit someone’s financial potential especially now that there are lots of available help on how to budget and save.
All it takes is a step in the right direction, but sometimes, it’s that first step that is difficult to make.
With a little help, individuals should find it easier to practice self-control and be more discerning with their money habits. We’ve listed down simple and actionable tips on better budgeting.
Allocating money to different expenses could make it easier to ensure that bill payments are not missed. Some financial planners refer to this as ‘bucketing,’ which is a process where different expense items—food, electricity, petrol, car maintenance, and even leisure—are separated in buckets.
Ideally, this can help individuals better monitor where their money goes and whether all financial needs are covered accordingly. It can also be a great budget tip for those with low incomes.
Deliberately tracking one’s money is a sign of being proactive; most people who are reactive don’t end up saving a lot. Not paying attention to where money goes makes it easy to lose track, resulting to going beyond the budget.
Being reactive can affect one’s ability to be confident about one’s spending power in situations like losing an income source, purchasing a home, or even planning to travel.
Sometimes, it’s the little expenses that can put a dent on one’s savings plan. Choosing where to spend on is a good start. For example, spending less on takeaway meals isn’t only a great way to save on cash; it’s also helpful in promoting better eating habits.
Data from the Australian Bureau of Statistics show that costs on takeaway meals, for example, make up a significant amount of Aussies’ monthly spending budgets ($95.05), which is almost triple the amount they spend on electricity bills ($35.05).
Spending wisely will require individuals to be more strategic on where their money goes. Before making a purchase, it’s important to assess if it’s essential or not, and if it can help achieve one’s financial goals.
Many fall into the common habit of spending money first before allocating something for savings. This approach inhibits one from building a healthy nest egg because there’s no consistency with the money put into savings.
Automating savings makes setting aside money for the future easy and spending a lot difficult. By taking money directly from the paycheck and putting it to a savings account, one should find it easier to grow money for future use.
Utilising this feature makes it easier for individuals to manage money better and achieve financial goals a lot quicker.
Managing debt is essential to staying on budget. It requires careful consideration since juggling debt payments and normal expenses can be challenging. It’s vital to make sure it money owed doesn’t spiral out of control.
A good starting point would be to make a list of all debts, the creditor and monthly payment due dates. Obtaining a credit report can confirm how much is owed and provide a clear idea of the amounts owed and when they are due, making it easier to meet monthly payments.
Being intentional with money is important in creating and staying within a budget. By being purposeful with all expenses, individuals can avoid spending unnecessarily and focus more effort on saving to build and grow a nest egg that will allow one to experience his or her lifestyle potential.
Are you ready to unlock your lifestyle potential?
This blog has been prepared by RJS Wealth Management Pty. Ltd. ABN 24 156 207 126. RJS Wealth Management Pty. Ltd. is a Corporate Authorised Representative (No. 438158) of Modoras Pty. Ltd. ABN 86 068 034 908 an Australian Financial Services and Credit Licensee (Number 233209). The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individual’s personal circumstances have been taken into consideration for the preparation of this material. Any individual making a decision to buy, sell or hold any particular financial product should make their own assessment taking into account their own particular circumstances. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Pty Ltd recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication.