Learn about Money Management
Just as driving a car or playing an instrument, managing money must be learned. It’s never too late to start! Learn about money management, and you will have immediate benefits. Budgeting makes you able to use the money you have wisely so you will save more.
People who manages their finances wisely have peace of mind and know how to:
• Pay for living expenses
• Keep debts to a responsible level
• Save money for recreation that makes life enjoyable
• Avoid continous stress over money
You don’t need to earn lots of money to manage your money effectively. With proper money management you don’t magically find more money. It merely helps you getting the most from the money you do have.
Family Money Management
Money management is harder for families because there are more expenses and more parties involved. When you start with family money management, it is crucial that the people of control over the funds – parents – are dedicated to the budget.
Create a Family Budget to Manage Money
Building a budget plan is a step–by–step process. Once complete, your budget is the solid foundation with which you can manage your current income and expenses and plan for future possibilities.
When creating a family budget, you will have to:
- determine your needs – spend your money wisely on the things you must have
- assess your wants – save money for the things you like but can live without
- set aside money for surprise expenses – for example, car repairs or health care costs
- stop accidental overspending – be aware of your daily cost
Budget for your everyday essentials like food, housing, utilities like gas, electricity, water, phone, transport and medical services. Having a budgeting overview helps you to make sure you have enough for unexpected expenses and emergencies.
Daily Money Management
When it comes to saving money, every cent adds up. Every day you spend money, often on small insignificant things. Small hidden costs add up quite quickly. With daily money management, you will see a significant financial change over the long run. Here are some daily money management tips to keep in mind.
Make coffee at home
Australia has a coffee culture. You might grab a coffee on the go on a school run or on your way to work. Maybe another one after lunch to keep going. In any case, spending $4 to $5 on coffee every day adds up. Instead, make coffee at home and save that barista coffee for the weekend.
Make a list for grocery shopping
Prepare your grocery store trip by checking your cupboard and make a grocery list. See which supermarket has relevant deals to maximize your savings as you shop.
Order cheaper meals at restaurants
Your social life doesn’t have to suffer if you want to save money. Eating out every day will deal a significant blow to your bank account, but you can still dine at a restaurant and stick to your budget. Skip the appetisers and choose a cheaper option on the menu.
Wait 24 hours before buying
With the convenience of online shopping we can buy anything at any time . Whatever we want, we can have with just the click of a button. Often these are impulse purchases. Try waiting at least 24 hours before spending money on items that cost more than a certain amount. You will notice that in most cases, the item was more of a “want” than a “need.” Plus, you’ll save money and learn to be more mindful with your spending.
Understand your emotions
For many, excessive spending is a way to avoid feeling certain emotions. Before going on a major spending spree, check in with yourself. You might find that you’re feeling bored, lonely or stressed and are therefore spending money as a means to avoid the underlying emotion.
Track your process
Saving just 1 percent is better than nothing. Track your progress and continue to increase the number year after year. Step by step, day by day, your savings will grow significantly.
The truth is, there are many ways to save money. Find ways that work for you, and slowly start incorporating the strategies into your life.
And there are many more daily money management tips out there.
Professional Money Management
We believe everyone can save money if they want. But if you are looking for a broader plan, such as saving to pay off your debts or invest in property, you may need professional money management. We have assisted countless clients with successfully paying off their debts and investing their savings in creating wealth. You can see client experiences here.
We also won Customer Service Experience of the Year category at the 2017 Optus My Business Awards along with other awards.
We can help you come back from poor money management. You may be in a position to pay off your mortgage in half the time. Get in touch, and we will do a money management assessment to see where you are and determine the best strategy to go forward.