Enhance your Financial Wellbeing in 5 Easy Steps

There are countless ebooks, blogs and videos on how to improve your financial standing. However, with all this advice floating around, it can be difficult for one to differentiate between the information that’s actually useful and the stuff that leaves you with an empty wallet.Enhance your Financial Wellbeing in 5 Easy Steps - Image

According to a recent survey, 22% of Australians still feel financially unfit. These are the financially vulnerable individuals unable to manage for a period of time if a major strain in their financial status occurs.

Things that directly affect financial situations include rising inflation, bad economy and changes in national policies, which alludes to the fact that there’s still a lot of gray areas where financial health is concerned.

So how do you keep tabs on your financial health? How do you cipher your way through the sludge to reach the ever elusive peak of financial stability? As daunting as this may sound, when it comes to your personal finances, the best way to end up with a lot is to start simple:
Develop better spending habits

As payday rolls around, ask yourself what do you do with your paycheck? If you’re like a lot of working Aussies, heading to the shopping centre on a payday is heading for trouble.

Our tip: Focus on improving your attitude towards money.  Do not let go of it as soon as you get it!  Instead, open up a savings account (if you haven’t already) and ensure that you make saving a portion of your pay your priority. By consistently setting aside some cash, you’ll always have some spare emergency funds even if you get tempted to spend most of your money on things you don’t really need.

Track your expenses

We’ve all encountered a time where we’ve had life throw us a curve ball and we’ve been urged to spend more than planned. Emergency spending is inevitable.

Our tip: Track your spending with an easy to use app.  You can still chose to track your expenses with an excel spreadsheet, but there are also many tools available that can make the task much simpler. Use one of the many free apps out there and find out where your money is going. You might be quite surprised with the results!

Reduce your debts

Buying a house is a life-long dream for many people. There are many property acquisition options available – housing loans are one of them. A loan for your dream house is much more appealing than making a weekly rental payment for a house that is not under your name.

Our tip: Do not make hurried decisions about housing loans, especially when it comes to choosing payment terms. Invest in professional advice and avoid costly mistakes.

Improve your credit score

Many people are inherently nonchalant about abusing their purchasing power. What they do not realise is that their credit history actually matters. Why? Because it affects their credit score.

Our tip: Build and protect your credit record to get a high credit score. Your credit score carries a lot of weight as far as your credit worthiness is concerned. The more credit-worthy you are, the lower a credit risk you are and the more likely you will be able to obtain finance and lower interest rates.

Save for retirement

What are your plans when your working life has come to an end? Have you given this much thought? It is never too early to work on a retirement plan. Saving for your retirement earlier makes it easier in the long term.

Our tip: Make savings for retirement a priority. Invest a portion of your income on a retirement plan. Regardless of how large or small you make, putting away some cash and eventually investing that sum will greatly benefit you as you reach your golden years.

It’s very important to keep your financial health in check.  So take the time to perform a quick financial health check-up today.  For more information on how to stay on top of your finances, contact us to set up an appointment with one of our valued financial advisors on 02 9299 7044.

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