You may have been told over the years that it’s important to save for your future. Sometimes that means saving up for a new car, a mortgage deposit or your retirement. But no one can dispute that wealth creation, whether short term or long term, is often put in the ‘too hard’ basket.
So many people feel like looking after their finance is just too hard. It’s complicated, time-consuming, and if you aren’t doing it right, it can be depressing too. However, with a little groundwork and some attitude adjustments to your finances, it can become much simpler and less challenging.
You can save more than you think
Most often, people have the excuse that they can’t afford to save very much. The problem here is usually that they’re waiting for the end of the month to see what’s left and then put that into their savings. This is completely backwards.
As soon as you get paid each month or week, deduct your chosen savings amount and put it away – this means you won’t miss it and you also won’t spend it on random things during the month.
Don’t buy things you don’t really need
Sounds simple doesn’t it? But you’d be surprised how many times you might make a purchase without really thinking it through. Before you buy something, ask yourself:
- Do I really need this?
- Have I already got one at home?
- How much will I really use this?
- If you can’t justify this to yourself, pop it back on the shelf.
Invest in yourself
If possible, you could focus on getting a promotion to increase your earning potential. Or you could look at starting a side hustle to earn some extra money alongside your day job. Invest in yourself to expand your knowledge and make yourself more employable and skilled.
If you are taking a second job or starting your own business, be sure to speak to your financial planner and a tax accountant first to make sure this won’t affect you adversely from a financial and tax perspective.
Pay off your debts before the term ends
Just because you take a loan over 5 years, doesn’t mean you have to take 5 years to pay it off! If you can put just $50 or $100 extra per month into a loan payment, you can bring down your term and reduce the interest you pay as well – it’s a win-win.
Face your financial fears
Burying your head in the sand is never a good idea when it comes to your finances. Facing your financial circumstances head on will allow you to see what you’re doing well and what you need to improve. You might think that paying a minimum off your credit card while ploughing overpayments into your mortgage is a great idea, but if you speak to a trusted financial advisor, they may not.
Make an appointment with our financial advisor in Penrith who will be able to help you design a wealth creation plan that works for you and your family.
We love helping our clients achieve their short, medium and long term financial goals. Because wealth creation is a marathon, not a sprint.
Book an appointment with us here or call us on 02 9629 1866.
Important Information: The information provided on this webpage is intended to provide general information only and the information has been prepared without taking into account any particular person’s objectives, financial situation or needs. Before acting on such information, you should consider the appropriateness of the information having regard to your personal objectives, financial situation or needs.
