In this latest question, Steve talks about a common frustration that he comes across when speaking with people for the first time.
I feel like I’m not getting ahead financially
Feeling frustrated about your money isn’t unusual but it’s what you do about it that can make all the difference. The best way to get back on track and feel more comfortable with your money is to create a budget and track your spending. You need to firstly establish what your “non-negotiable’s” are on an annual basis. These include your household running expenses (rent/mortgage repayments, rates, water, utilities etc) and essential basic living costs such as groceries, car maintenance, insurances, school fees etc. Once you have calculated what your fundamental living expenses are, establish what surplus funds you have left from your annual income. This will help you create a budget to realise what you actually have left to allocate towards other “non-essential” items such as take-away food, coffees, alcohol, streaming subscriptions, designer clothing, holidays etc.
I find that clients that understand their spending are more likely to stick to a budget and get ahead financially. Set yourself a “luxury spending” limit and withdraw this as cash each pay day. You will be more aware of your spending habits and able to stick to your limit if you only have a certain amount of cash to spend each pay period.
ASIC MoneySmart website has a great budget planner which I regularly refer clients to, you can access it here: https://tinyurl.com/l6okxy2
Better still book some time with a financial adviser to help you step through the changes you can make to your spending habits. If you need help with this and achieving what you are working towards why not book a time to chat with me here, at no cost to you!
Note: The above information has been provided as general information and you should seek advice specific to your personal circumstances before taking any action.