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If you find yourself dreading each new bill time and time again, you aren’t alone. Many Australians don’t know how to manage their money. We aren’t all accountants, but we don’t need to be. There are simple strategies out there to better manage your money, and here are some simple tips.
Set Realistic Goals
Follow your dreams, but remember to keep your head in reality. Not everyone can afford the latest Porsche, flat in Bondi or month-long trip to Paris. If you feel stressed dealing with finances, set realistic money management goals. One goal is saving 10% of your paycheque each pay period for a nice restaurant meal, a deposit on a new car or investing in property or shares. Here are some of the handy tips when preparing for a loan.
Make Your Savings Harder to Access
If your debit card hooks right into a substantial savings account, it’s tempting to use it on almost everything. One tip is to open a savings account with high interest that’s inaccessible via any electronic form of payment. Some accounts give you bonus interest if you top it up regularly without making withdrawals.
Use Automation
We all have regular bills – rent, gas, electricity, phone, and internet. There’s no point in getting the bill, sticking it on the fridge and forgetting it until pay day. Automate your bill payments using direct debit. Avoid using direct credit, as credit will attract the usual high credit card interest rates. It makes sense, too: some power companies will reward you for paying on time with a discount.
Plan Your Expenditures
Time is money, as the saying goes. You can use this to your advantage. You can plan ahead for your weekly, monthly and quarterly/emergency expenses. All your income can be pooled into these categories. One tip is to dedicate accounts to each kind of expense. Then you’ll be prepared for any unexpected bill or expenditure.
No Silver Bullets
Of course, there are no silver bullets when it comes to money management. But there are tools that can help you. One such tool is “You Need A Budget” which helps you with money across your computer, tablet and phone. That’s just one: there are many more that may suit you better. Of course, for real budgeting power, you should talk to a financial planner or adviser for more information.
About the Author:
Bill Tsouvalas is the founder of Bad Credit Car Loans, which offers personal and business car finance and insurance for people with having bad credit issues in Australia.