Effective money management is key to securing your finances and managing your cashflow. It is also important for avoiding debts and preparing for the unexpected. If you’re struggling to manage your money, following these tips will help you get your finances back on track.
Four steps to better money management
Adopt a spending mantra
Following a specific rule or quote helps you to rationalise each of your expenses and regulate your spending habits. Try to think of at least one constructive question or famous phrase that you can refer to each time you make an impulsive purchase. For example, you could ask yourself, “Is this $100 shirt better than a holiday next year?” If the answer is yes, then you can buy the shirt. If the answer is no, then you put the shirt back on the rack. Regardless, this question makes you consider if a short-term impulse buy is more important than your long-term goal. Abiding by a mantra makes you more accountable for your money and will keep you feeling optimistic about reaching your financial goals.
Create a financial calendar
Get a snapshot of your future income and outcome by preparing a weekly, fortnightly or monthly financial calendar. Financial calendars are beneficial for managing cashflow, preparing for upcoming bills and paying off debts on time. They can also help with saving up for big purchases, limiting credit card expenses and ensuring that you are contributing to your savings account regularly.
Set a budget
At Walker Hill, we’re always educating our clients and blog readers about the importance of budgets … so do you have one yet?! Creating a realistic budget that you can stick to has many lifestyle benefits and is vital for ensuring you are living within your means. Budgets help to track your expenses, save money and make financially positive lifestyle changes. Learn how to create a successful budget by taking a look at our recent blog The Ins and Outs of Budgeting.
Automate your savings
Although we briefly touched on savings earlier, they merit their own paragraph because building your savings is one of the most important aspects of securing a financial future. Nonetheless, regular savings always seem to be the very first thing to be forgotten or ignored when it comes to money management. The best way to stay vigilant with savings contributions is by setting up an automated transaction with your bank. It really couldn’t be easier to watch your savings account grow!
