How to pay your bills, how to better manage your debt, how to save money… these are questions that usually become a headache, regardless of your income level. Indeed, the more you earn, the more you can afford so the more you spend.
This situation can be very frustrating as you find yourself on a financial roller-coaster, however, you should not get discouraged – rather, why not change it up?
Here we share a five-day personal finance challenge that will help you to get your money life back on track.
Day 1: Get your super sorted
Superannuation is a tax-effective way to save for your future. Therefore, there’s no excuse for ignoring your super.
Here are some basics related to super that you need to get sorted:
- Check that your employer is paying you the correct amount of super and in a timely manner.
- Check you have nominated a beneficiary, so your super goes to the right people if something happens to you.
- Check whether you have any lost super lying around from previous jobs. You can log in to your mygov account and see all your super funds as they are linked by your TFN.
Find out with your superannuation fund how to access your account online to better manage your super.
Day 2: Create your budget
Setting up your budget will allow you to begin changing your finances.
Before you make a budget, you need to know your numbers. Having a clear picture of your income, regular expenses and spending habits will help you to figure out exactly where you are.
Then, consider cutting out the unnecessaries. It is helpful to categorise your spending so you know where you can make adjustments that will allow you to put extra money toward your debt or savings goals.
Credit card and bank statements are a good place to start since they often itemise or categorise your monthly expenditures.
Day 3: Start an emergency fund
It is important to put money aside for a rainy day. Putting a little away into your savings account each month will help you build healthier financial habits and meet any unexpected bill.
You can start by giving yourself a target. For example, if you’re aiming for $2,000 in an emergency fund and you can manage to put away $50 a week, you will reach your target in less than a year.
Day 4: Check your interest rate
The first step is to ask yourself what rate you are currently getting. If you are not sure, then it is time for you to find out and why not, to have a look at the market.
These days you can set up a new savings account quickly online. So, there is no reason to stick around if you are not getting a good deal.
If you have any loan, why not see if your lender can give you a better deal. You could also consider switching providers if it is worth doing so.
Day 5: Build your goals timeline
This is the final day of our five-day challenge! It is now time to think about the bigger picture and what you are aiming for in 2020.
Is it important to spend time on setting the goals that will help you to keep moving forward. Break down your goals into smaller steps and reward yourself when you hit each of the milestones.
And don’t forget, the key to achieving your goals is to stay motivated throughout the process!