At times, you may view your bank account as a mysterious thing that’s beyond your control. But there are actually some simple things that you can do to turn your personal finances around, no matter what state they’re currently in.
Here are four tips that work, and four that usually don’t.
We’re not suggesting that you head off to Bunnings every weekend (unless that’s your thing), but restricting the number of things you pay other people to do will leave you better off in the long run. Cook up a storm on a Sunday afternoon and freeze the bounty for lunches during the week, and get your workouts from YouTube rather than the gym…
It’s easy to forget about all your good intentions once the novelty of getting ahead wears off. Set up your bill payments so they go by direct debit on the day they’re due (so you’re never hit with late payment fees), and arrange for a transfer of money to go into your savings account every time you’re paid so you don’t have to think about it.
Make all your purchases deliberate. Avert your eyes when you wander past sales racks or have to queue next to confectionery items at the checkout – retail outlets are set up to part you from your money, don’t let them!
If it’s stuck in a block of ice that you have to wait to thaw before you can use it, it gives you a chance to really think about whether you actually needed to spend that money after all.
Sometimes it’s worth spending a bit more to get something that’s higher quality. If you are choosing between a coat that will last you 10 years and one that might make it through one, you’re probably better off buying the one with staying power, even if it’s twice the price.
It’s great to stock up if there’s a good deal on something you need. But don’t just buy it because it’s cheap, especially if it’s food that you don’t use often – chances are you’ll never get around to working out how to cook it and you’ll end up chucking it away.
Feeling guilty about your daily coffee or your drink after work on a Friday? Don’t. If your budget starts to feel too tight, you’re likely to eventually rebel and throw it all away. Keep it manageable and enjoyable so it’s easier to stick to.
Taking out cover online may seem like a quick-and-cheap answer to your Insurance needs. But the reality is, you may not get the right level of coverage nor understand what’s really covered and what’s not. So get some advice to make sure the cover you’re paying for will pay out when you need it to – at claim time.
Once again, we’re here to help you make better-informed financial decisions. Please use us as a soundboard and ask us as many questions as you have; we’ll be happy to walk you through the details.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek advice from a financial adviser.