Simple Habits to Improve Your Financial Wellbeing
If you are worried about staying on top of your financial situation, you might find some helpful strategies listed below which can be implemented into your daily lifestyle.
Track your expenses:
Spending $30 on coffee a week? Know where your hard-earned cash is really going.
The 50/30/20 budgeting method splits your income into needs, wants and savings. 50% goes towards your needs, such as rent and bills, 30% goes towards your wants, and the remaining 20% into your debt repayment and savings. You can shuffle these amounts around depending on your situation and personal goals. Implementing an organised and structured budget system will ensure you have a solid foundation to start better managing your finances.
A debt pyramid is a way to manage your debt by mapping into a hierarchy or pyramid. Make a note of all your debts and place those with the highest interest rate at the top. Rank your debts on the way down the pyramid assigning a spot for all such as student loans, mortgages etc. based on their interest rates or the fees associated.
By now, pay later:
Apps such as ZipPay and Afterpay which allow you to buy now and pay later often come with unwanted fees. Missed a monthly payment? You’ll probably cop a late fee each time. These payment methods can lead you down the financial road of despair, leaving you with more things to pay off than possible. Moral of the story – don’t spend money you don’t have.
As bad habits have it, leaving bills until the last minute or until they’re overdue can happen on occasion. Make sure you allocate time into your schedule to open your bills, make your payments and stay organised.
Talk to your advisor:
Lastly, consider talking to a financial advisor to help you keep your financial situation and wellbeing in order. Contacting an advisor can give you a realistic picture of your finances and help you put a plan specific to your needs in place.
Staying proactive and having measures in place to reach your financial goals is necessary to prioritise your financial wellbeing.
Contact your advisor to discuss your options and give you the reassurance and tools to stay in control of your finances.