Published on May 27, 2015 9:38 am, by Beck Cofrancesco
It’s funny how often we wait to start something new. Next Monday, next week, next year. All next! How about we make our finances next – and next NOW?
If you’ve been waiting for a new financial year to get on top of things – let’s harness all that energy and drive. 6 things you can do right now to create a better money life.
Careful though – all these tips will self-destruct within 2 days – you better get a move on (nothing like a good incentive to act now!).
1. Know your why
When you know your why (your purpose) there is little you can not do. It becomes a driving force to get more of what you want in life.
Think about what your money does for you and what motivates you to keep earning money. For some – it’s providing for a family, for other’s it’s paying off a mortgage or travelling the world.
To do: Sit in a quiet spot for 10 minutes… reflect on…
Why is money important to you? What does it do for you? Write it down.
2. Track your spending
You may already be tracking your spending using MoneyBrilliant or a spreadsheet but how often are you looking at it?
Log in to your free MoneyBrilliant account and have a look at your reports. If you don’t have one you can sign up or spend an hour or so entering it all in your own spreadsheet.
Ask yourself – is there one thing you could be doing differently that would improve your position? Off you go!
3. Weed out money opportunities
Have a look at your bills, your groceries, and lifestyle expenses. Are you paying too much?
Does your spending reflect your ‘why’?
To Do: Where are your opportunities to create spare money?
Common areas to check each year are – Electricity, Gas, Phone, Internet, Health Insurance etc. Make time to visit a comparison website to see where you are paying too much.
4.Make a plan to reduce any debts you have
Stop wasting money on high interest loans and work out a way to pay them down as soon as you can.
To Do: Log in to your bank accounts and loans.
Have a look at the interest rates you are paying. Add up how much total debt you have. Then, check out comparison websites for the best deal.
Refinance if it makes sense – and put the money you save to good use by paying extra towards your debt.
5. Start Saving – for the fun things you want to do
If you’ve got to this step you must have worked out where to get spare cash. Time to set up a regular savings plan so you can start growing your money.
Set up an automatic transfer into a savings account when you get paid.
6. Start Saving – for the what if’s (what if something goes wrong?)
It’s totally normal not to want to save for what ifs. We all think nothing will ever happen to us. But sadly, sometimes bad things happen to good people (of course we are all good).
A good rule of thumb is to aim to save at least 3 months’ worth of expenses so in case you lose your job or get sick you will be ok. You can focus on getting better or finding another way to earn money instead of worrying about how you’re going to get by.
Of course, you can do these things at any time, but just like your health, it’s a good idea to get an annual check up to make sure it’s all in working order and that your money is working just as hard as you are.