Some people have a really hard time cutting down on their spending in order to reach savings goals. But before you start saving towards a target, it’s a good idea to first understand your relationship with money.
A good way to do this, is to monitor your spending patterns for a few weeks in order to figure out how much you’re spending per week, and what sort of things you are buying.
Keeping a close eye on your bank balance will also mean that you can see how much money you have left over from each pay cheque, and find out if you need to change your spending habits.
A financial planner can also help you to identify ways to reduce your spending, by examining things like mortgages, personal loans and other forms of credit debt.
Many people in Australia live their lives going from one paycheck to another, which can sometimes place them under financial strain. It also means that these people are not able to create savings.
This then makes paying for unexpected costs very difficult, as there are not any funds to rely on.
For instance, if a person was living from one payday to another with only a spare $100 in their account, they would find it extremely hard if they had to pay some emergency medical costs. This may even result in having to seek personal loans or credit in order to pay for them.
Saving money can be done, and is easy to do. It just requires a few lifestyle changes here and there in order to save a few dollars.
In order to help you on your saving journey, here are some helpful suggestions:
create a personal mantra
This is for motivational purposes, and may be anything from reciting to yourself “Less now, more later”, or picturing in your mind what you’re hoping to achieve with your savings. It’s all about having something to work towards, and to strive to every day.
pursue short term goals
Give yourself short term deadlines to work towards, so that you can achieve them quicker. Short terms will also make you work harder, and will allow you to reward yourself more often. For example, if you’re planning to save $20,000 over two years, you may make it a goal to save $5,000 every six months, or even $1,000 every month.
Whichever way you decide works best for you, it’s always important to seek the advice of a seasoned financial planning professional before you begin saving.
we can help
If you are wondering where to get financial advice, we can help. Why not get in touch by calling 1800 626 881 or by using the ‘contact us’ tool on our website.