Want to be better with money?
Here are 10 tips from our experienced team for developing good money habits and a positive money mindset:
1. Develop your own skills and value
One of the most important investments you can make is in yourself. Whether that means reading up on something that interests you, improving your skills and education, getting expert support from a coach or mentor, or looking after your health and well-being, you’ll end up reaping the rewards. You may get paid more as a direct, or it may help you create new opportunities and move towards your goals with positive energy and purpose.
2. Choose a lifestyle and stick to it
When your salary is $50,000 a year, it can be easy to spend as much as you earn pretty much every month. What would happen if you end up earning twice as much in five years’ time? Unless you’re prepared to stick to a relatively modest lifestyle, chances are you won’t be saving any more when you’re on a six-figure salary. Lifestyle Inflation occurs when your spending increases along with your earnings. It is a money mindset that can have you looking back and regretting how much you spent and how little you’ve saved. Make a mindful choice of the lifestyle you want, and stick to it, regardless of how many pay rises come your way.
3. Don’t delay, save today
It’s so easy come up with any number of reasons why it isn’t the right time to save – having student loans to settle, going travelling or family occasions! Don’t put off saving until you feel richer, as it is unlikely that will ever happen. Make a commitment to start saving right now, even if it’s a small amount. As it starts to add up, you’ll discover how good it feels not to be living from paycheck to paycheck.
4. Make a budget
Taking control of your money isn’t just about saving. It also means getting a grip on where your money goes and making sure you’re spending it on things that matter to you. If you feel like money simply slips through your fingers, create a realistic budget and make a plan to track down those disappearing dollars and use them wisely.
5. Small changes, big results
Small changes can have a big impact on your financial position and money mindset. Make one extra repayment on your mortgage, have one less take-away meal in the week, buy one coffee less each day, or cancel something that you don’t use, like a subscription or cloud service. Scrutinize your credit card statement to find forgotten debit orders or things that you are paying for regularly that you could do without. The benefits will add up!
6. Read one finance book
A single book can impart knowledge that will serve you for a lifetime. There are so many to choose from! If you don’t like reading, get an audiobook, or explore some good podcasts. Knowledge is power.
7. Optimise your tax
Taxes matter! Don’t pay more tax than you need to, and make sure that you claim all legal deductions that you are eligible for. Find out about your tax bracket, and learn strategies to reduce the amount of tax you have to pay, while fast-tracking your savings and investments. Make use of the tools on the ATO website, or seek advice from a qualified financial adviser or accountant.
8. Let your financial adviser be part of the team
From ATO crackdowns and stock market ups and downs, to government red tape, super considerations and borrowing to invest, personal finances can be complex. Your financial adviser can add real value. They can offer you expert advice, tax and cash flow strategies, funding options, investment and wealth building strategies, and more! Having someone ask the right questions to help you get your priorities in order and take action can help a lot. It’s time to start viewing your financial adviser as an investment rather than a cost point.
9. You can’t have it all, and that’s okay
When it comes to having enough money to live a happy and satisfying life, unlimited wealth isn’t a realistic or necessary goal. By taking time to understand what’s important to you, you can make smarter choices about what you spend your money on and understand how to get the balance right between earning money, creating wealth and enjoying life on your terms.
10. Think in decades, not years
Thinking about how far you’ve come in a decade can give you a real sense of what you might be able to achieve in the next ten years if you start taking steps towards those goals now. Taking a long term view puts things into perspective and helps you to ask the right questions to get your priorities in order and start taking action.
WARNINGS, DISCLOSURES & DISCLAIMERS
While every care has been taken in the preparation of this article, Soundbridge Pty Ltd (ABN 40 151 134 146) and AFTA Pty Ltd (ABN 18 624 984 550, AFSL 507423) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts.
The information and any advice provided in this document is general and has been prepared without taking into account your objectives, financial situation or needs, and might not be appropriate to your situation. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things. Past performance is not a reliable indicator of future performance. AFTA Pty Ltd does not warrant that future forecasts are guaranteed to occur.
The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases, the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document.
Soundbridge Pty Ltd (ABN 40 151 134 146) is a representative of AFTA Pty Ltd (ABN 18 624 984 550), Australian Financial Services License (507423), Registered office at 166 Quay Street, Rockhampton QLD 4700.
Any advice on this website is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.
Posted on June 26th, 2020