"Take time to review how you manage our personal finances. Hopefully you can learn a few tips from the article below!" - Ben Crow
For better or for worse, you may have fallen into a personal routine to manage your finances. Whatever method you might have for yourself, here are a few suggestions that can improve on those habits to save time and increase your savings.
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1. Track your spending
You can only manage the money or expenses you know about. Tracking where your money goes each month is the first step to greater control of your personal finances. You can allocate them into different spending categories so you can adjust your monthly budget accordingly, and plan where every cent of money goes.
2. Save before you spend
The majority of people spend most of their income first, then save whatever is left over afterwards. A simple change of setting money aside to save first, before spending the rest allows you to increase your savings and meet goals easier. Allocate a 'savings' budget so you can save a set amount each time you receive your income!
3. Emergency Funds
Emergency savings is something we all need, but is often taken for granted. People think they are immune from any disaster until the unfortunate happens to them. They are then forced to max our credit cards, take loans, or spend money they can otherwise use to pay off their mortgage. An emergency fund negates all this so you have some breathing room to get back on your feet when the unexpected happens. Some suggest to save up at least 3 months worth of expenses.
4. Automate regular bills
There is little excuse to incur late fees because you forgot to pay your bills. It is quick and easy to set up automatic debiting of recurring expenses such as loan repayments or body corporate fees. Save time and hassle without having to pay another late fee again!
5. Shop around
Blind loyalty to a brand you've patronised for years may be costing you extra money. Just because a company might have given you great value in the past, there may be other services out there that can offer you similar results, for less of your hard earned cash. Check if you have the best deal with your internet provider, car insurance or even your home loan. If you haven't compared rates or prices in a while, chances are you might be able to save extra money. Lastly, don't be scared to negotiate!
6. Cut down on the unnecessary
Do you need multiple streaming subscriptions? How many credit cards do you need? Recurring fees can sometimes be overlooked because it isn't a huge lump sum of money that catches your eye. But these recurring small amounts definitely add up and cost you way more than you expected! Review of all your expenses and really reflect on which services to keep!
7. Set goals
Setting savings goals can give the direction and motivation you need to buy larger big-ticket items you have might have struggled with previously. Log your progress, stay focused and remember what you're working hard for!
8. Digitise your receipts
Make it a habit to digitise your receipts in a central location so tax time won't be so gruelling. It may be wise to track all your tax deductible expenses as you are incurring them so it doesn't build up into an ineligible mess at the end of financial year.
9. Sort your super
If you've changed jobs a few times, you might find yourself with multiple super accounts. It is important to consolidate your accounts into a single one to avoid unnecessary management fees being deducted from your each of your accounts.
Moneymgmt can help you with every aspect of your personal finances in a single, easy-to-use app. Tracking your spending, setting savings goals, and recording all your tax deductible expenses have never been easier. Sign up to Moneymgmt today!