There’s a “hack” for just about everything these days, so why should personal finance be any different? Here are a few tips and tricks that we recommend to keep your personal finances on track, and set you up for some solid success.
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BUDGET – There’s even an app for that.
Use a budgeting tool. We’ve got one here on our website you’ll find handy, or you can set up a budgeting app in order to track where you’re spending your money. You can then identify areas to cut down. Some popular apps out there are Monzo and Wally.
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Make bad and high-interest debt your priority
If you have bad debt – most especially credit card debt, it’s imperative that you aim to pay that off before anything else. It’s often argued that you should invest in markets prior to paying off your bad debt, but generally speaking, it makes far more sense to get rid of this burden as quickly as possible.
If you don’t the interest will stack up and become even worse than bad.
To help reduce bad debt in your personal finance, it’s worth investigating your options for debt consolidation, as in many circumstances you’re likely to get a more competitive interest rate that’ll help you lower the overall amount to pay. Debt consolidation also makes payments easier – one single regular payment rather than multiple. We’re perfectly positioned to talk you through you your options for consolidation – give us a call (1300 469 840) if you’re interested in this approach.
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Put your personal finances on autopilot
Late payment fees suck — and they can hurt boring but important things like your credit score, too. Luckily, it’s easy to set up automatic transfers — not just for things like rent, but also contributions to savings accounts or even credit card payments.
If you schedule these for just after your payday, you’ll never even miss the money! Setting things on autopilot can ensure your finances are going strong without you needing to constantly meddle.
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Spend less where you can
We’re all guilty of spending money on subscriptions that we don’t really use, whether it’s that streaming service you haven’t watched for six weeks or the expensive gym membership you haven’t used for six months. It’s a good idea to sort through these subscriptions every once in a while to make sure that you’re not wasting money on a service you don’t even benefit from.
There’s plenty of ‘make a list before you shop’ rants to insert here, but we’ll be kind and let that kind of thing go unsaid (’cause you already do that right?).
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Get rewarded for regular spending – carefully …
There’s has been extensive research on how to use your day-to-day spending to let you travel free or enjoy other perks. Lots of major credit cards offer rewards programs, but the good stuff comes with a warning – pay off the balance in full each month to avoid it turning into BAD DEBT. Done right, this option can be a very profitable racket, but buyer beware, it MUST be done right and carefully for them to be successful for your personal finance.
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Use cash
Using cash to pay for transactions can be a great way to budget — and to confront where you’re spending your money. When using cash, you physically open your purse, versus simply swiping or tapping a card. You’ll be much more likely to consider whether you really need that latte.
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Take steps to actively shift your thinking around financial freedom
In order to achieve financial freedom, you have to first change your way of thinking about money. This means doing things like embracing delayed gratification, and reducing impulsive buys. It feels good to live within your means — and being able to put some money aside allows for greater financial freedom in the long run.
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Set up an account for fun money & pay yourself
Set aside some money to spend on whatever your heart desires — be it beer, food or a new pair of kicks. Part of your budget (see #1) should give you the freedom to allow yourself a set amount each week, stick to that and you’re most of the way there.
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Grow an emergency fund
This is a tried-and-true practice, because let’s face it; the unexpected is as advertised … unexpected. If you don’t have the funds to fix the leak, tow your car or take your pooch to the vet, what will you do?
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Set financial goals to reward yourself, it’ll keep you motivated
Save for something. A car, a holiday or a piece of jewellery, it doesn’t really matter. What matters is that you’ve got the fiscal discipline to make it happen and the day you go to pay for your reward, you’ll be smiling from ear-to-ear knowing you’re well within your rights to claim your prize.
If you tick these ten items off your financial list, you’ll be well on your way to superstardom, and will even have you ready to apply for a loan – big or small – with very little doubt about your eligibility.
If you’re considering finance for anything – a home, car or otherwise – we can help you assess your position and get you prepped or even show you the most competitive options out there.
Get in touch with our specialists today: 1300 469 840
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